Italy is to allow EU businesses with an Italian VAT number to process a credit application through a new ‘direct refund procedure’. This follows a Court of Justice of the European Union decisions (C-323/12) of 6 February 2014 and (C-242/19) 11 June 2020 which upheld the view that VAT credit refunds to EU non-residents was unfair.
The new process will cover:
- EU-resident businesses with an Italian VAT number
- Italian purchase invoices that list the customer’s non-Italian VAT EU VAT number
- These invoices should not have been processed through the businesses regular Italian VAT return or annual return
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