- The Italian tax authorities clarified VAT recovery on payback amounts for medical devices, as per legal consultation no. 7 of 31 March 2026.
- The payback mechanism requires medical device suppliers to contribute to excess regional spending, calculated on turnover inclusive of VAT.
- Companies can deduct VAT on payback payments, provided they issue an accounting document detailing the relevant regional measures and VAT rates.
- The payback obligation was reduced to 25% of the original amount, with payment due by 9 September 2025.
- Clarifications were requested on VAT deduction methods, especially since many regions only provided payback rates inclusive of VAT, and on the required accounting documentation.
Source: blog.pwc-tls.it
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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