- The Italian Supreme Court ruled (judgment no. 4900 of March 4, 2026) that taxpayers can claim a VAT refund directly from the Treasury if a customer in insolvency proceedings for over 10 years has not paid.
- This applies when it is impossible to issue a credit note and the taxpayer can reasonably prove the creditor’s claim cannot be satisfied during the insolvency process.
- The decision specifically addresses cases where insolvency proceedings began before May 26, 2021, under the old VAT rules.
- The ruling aligns with EU VAT Directive principles, which require VAT adjustments when payment is not received.
Source: kpmg.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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