VAT Adjustment Rules for Creditors in Preventive Agreement Converted to Judicial Liquidation

• The Italian Revenue Agency clarified the rules for issuing a VAT reduction note when a preventive agreement is converted into judicial liquidation.
• Creditors must follow the rules in effect before May 26, 2021, and can only issue the VAT reduction note once the procedure is proven fruitless.
• Judicial liquidation can occur without prior resolution of the approved preventive agreement if no timely request is made.
• For the portion of the credit not admitted in the liquidation (the “written-off” amount from the preventive agreement), the VAT reduction note can be issued once the decree on the state of liabilities becomes final.
• The finality of this decree confirms the irrecoverability of the written-off credit, unaffected by further developments in the liquidation procedure.

Source: eutekne.info

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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