- The Italian Revenue Agency has provided guidance on recovering excess VAT paid through the split payment mechanism.
- The guidance was given in response to a query from a municipality that had settled commercial debts with suppliers using government grants.
- The municipality had paid the VAT directly to the tax authorities based on the original invoices, rather than the actual amount paid after the settlement.
- The municipality wanted to know how to recover the excess VAT paid.
- The Revenue Agency confirmed that the municipality should have paid the VAT based on the actual amount paid, not the invoice amount.
- The excess payment is considered an undue payment, as no credit note was issued by the supplier.
- It is not possible to offset the excess VAT against future split payments.
- The municipality can request a refund under Article 30-ter, paragraph 1 of the Presidential Decree 633/72 within two years of the undue payment.
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.
