The Italian tax authorities issued a ruling (no. 292 on 31 August 2020) clarifying that it is possible to file an amended value added tax (VAT) return that includes a claim for a refund of VAT without also having to provide bank guarantees.
The taxpayer filed VAT refund claims for years 2015 and 2017. At the time of the amended VAT returns, the taxpayer was not entitled to obtain a “conformity visa” (i.e., a certification by a registered accountant that the VAT credit in the claim for refund was “genuine”) and thus was not entitled to file the VAT refund claim without a bank guarantee (one for each refund claim filed) because there were in existence at that time certain pending tax charges. Therefore, the Italian tax authorities requested the taxpayer supply the bank guarantees in order for the VAT refunds to be paid.
After the taxpayer settled the pending tax charges, the taxpayer filed a request with the Italian tax authorities for a ruling to confirm that it is possible to file (for instance, in 2020) amended VAT returns for the years 2015 and 2017 along with the conformity visa in order to obtain VAT refunds without the need to submit bank guarantees.
The Italian tax authorities in the ruling confirmed that as soon as the taxpayer satisfies all the requirements to certify the VAT returns with the conformity visa (even if these requirements were lacking at the time of the original VAT return), the taxpayer is able to submit the amended VAT returns with the conformity visa and to obtain the VAT refunds without having to provide bank guarantees. The submission of the amended VAT returns is possible if the years at issue are still open to assessment from the Italian tax authorities.
The tax authorities in this matter determined that the amended VAT return with the conformity visa could be filed before expiration of the statute of limitations for the year concerned (e.g., the amended VAT return for 2015 could be filed by 2020)—and despite the fact that, at the time of the filing of the original VAT return, the conformity visa could not be granted because of certain missing requirements—as long as these requirements are satisfied at the time the amend VAT return is filed.
Read a September 2020 report [PDF 144 KB] prepared by the KPMG member firm in Italy
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