- Italy has updated VAT Group rules effective November 5, 2025, clarifying when bank guarantees are required for input VAT credits.
- Companies in a VAT Group can be exempt from providing a bank guarantee on input VAT credits over €30,000 if they have operated for at least two years.
- Retroactive exemption is possible by filing a supplementary VAT return with compliance certification, provided no VAT audits are ongoing.
- Penalties for late compliance are introduced, either as fixed or proportional amounts.
- The changes are especially relevant for groups with foreign parents or cross-border structures seeking to optimize VAT cash flow.
Source: meridianglobalservices.com
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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