- The Italian Revenue Agency confirmed that direct guarantee by a parent company for VAT refunds is not always permissible
- This applies to corporate groups whose net assets are not shown in a consolidated financial statement prepared according to Legislative Decree 127/91
- Reference law is Article 38-bis paragraph 5 of Presidential Decree 633/72 which limits simplification to groups with consolidated balance sheets showing assets over 250 million euros
- Previous administrative practices clarified that merely having a consolidated balance sheet is insufficient, it must comply with obligations under Article 25 and subsequent of Legislative Decree 127/91
- The term parent company refers to the entity, whether national or EU-based, that is required to prepare the consolidated balance sheet
- In the specific case addressed, direct guarantee assumption was denied because all group companies, except for the Italian applicant, were not residents in the state, including the US parent company
- Legislative Decree 127/91 was deemed inapplicable as the parent company was not based in Italy
- The applicant’s reference to a previous ruling allowing direct guarantee by a national controlling company in VAT liquidation procedures was considered irrelevant since it did not submit its own consolidated balance sheet but that of the US parent company
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.
