- Divisione Contribuenti issued response number 257/2024 regarding VAT refunds and guarantees
- The subject involves a non-EU controlling parent company and the prohibition of direct assumption of obligation under article 38-bis, paragraph 5, of the Presidential Decree of October 26, 1972, no. 633
- ALFA S.r.l., a company that produces and sells various products, often finds itself in a VAT credit position due to significant transactions with regular exporters and high volumes of exports and intra-EU sales
- ALFA is currently 100% controlled by the Luxembourg-based company BETA, which is a subholding of the international group also controlled 100% by the US-based company GAMMA
- To fulfill the guarantee obligations for VAT refunds requested by ALFA, BETA has so far provided guarantees to the Treasury by directly assuming the obligation of full repayment of the refund amount, including interest
- BETA, being a Luxembourg legal holding, is not required to prepare and present consolidated group financial statements as this is done by its non-EU controlling company, GAMMA
- The group is expected to undergo corporate restructuring in the coming years, changing the controlling shareholder of ALFA to GAMMA, which will result in no European subholding to guarantee VAT refunds as before
- In light of future VAT refunds, the group intends to proceed with the obligation of payment and issuance of a letter of patronage directly through the US parent company GAMMA, which will continue to present consolidated financial statements in its home country
Source: agenziaentrate.gov.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.
