- The Italian tax agency, Agenzia delle Entrate, has clarified that in the case of a renegotiated contract, the client can only deduct the VAT resulting from the renegotiation agreement.
- The supplier, however, cannot correct the invoices issued with a variation note after one year from the execution of the service.
- This means that the supplier would have to pay the full VAT amount to the tax authorities and then request a refund for the incorrectly invoiced VAT, which puts them at a competitive and economic disadvantage.
- The AIDC behavior rule n. 222/2023 allows the supplier to correct the incorrectly invoiced VAT through a credit note, even beyond one year, aligning the VAT due with the VAT deducted by the client.
- This solution is in line with the principles of effectiveness, neutrality, and proportionality.
Source: ipsoa.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.
