Non-residents entitled to VAT refund in Italy even without supplier’s VAT position

• The Italian Supreme Court has ruled on the right to VAT refund for non-resident companies in Italy.
• The court stated that the refund applies even if the supplier does not have an Italian VAT position.
• In the case examined, a German company made purchases from a non-resident company that also did not have an Italian VAT position.
• The refund was initially denied because the selling company did not have a VAT position at the time of the transaction.
• However, the Supreme Court disagreed and stated that the right to refund cannot be denied to the purchasing company.
• The court emphasized the importance of substantive requirements over formal requirements.
• The court also referred to a previous ruling that stated the late identification of the buyer’s VAT position is irrelevant.
• The court concluded that the right to refund should be recognized if the VAT was actually paid to the seller and if the refund is not fraudulent or abusive.
• The court emphasized the principle of tax neutrality.

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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