- The Italian tax authorities clarified that exemption from the guarantee for VAT credit offset in group VAT settlement depends on verifying two years’ business activity at the time of the annual VAT return, not at the time of intragroup offsets.
- A supplementary VAT return with a compliance certificate (“visto di conformità”) can be submitted to obtain exemption, provided no tax inspections are ongoing and within assessment deadlines.
- If the supplementary return is filed within 90 days of the deadline, only formal penalties apply; after 90 days, higher penalties and interest are imposed if no guarantee or exemption is provided.
- Certification of compliance with Article 38-bis conditions must be indicated in the VAT declaration, even for intragroup offsets, and can be done via a supplementary return.
- The case involves a Dutch company with a complex VAT history in Italy, seeking to avoid providing a guarantee for VAT credits offset within a group VAT settlement by meeting the exemption requirements.
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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