- The Italian Revenue Agency (Agenzia delle Entrate) clarified that VAT credits accrued by a VAT Group cannot be offset against debts or credits of another entity, even if part of the same group or consolidated tax regime.
- The VAT Group is considered a separate tax entity, distinct from its individual members and from the national tax consolidation group.
- The Agency denied the possibility for a VAT Group to transfer its annual VAT credit to the consolidated tax regime for offsetting purposes.
- The only permitted uses of the VAT credit are requesting a refund or carrying it forward to the next period; cession to the consolidated tax regime is not allowed.
- This position is based on Italian law and EU directives, which treat the VAT Group as an autonomous taxable person for VAT purposes.
Source: fiscooggi.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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