Italy Tax Agency Clarifies Group VAT Settlements in Corporate Restructuring

The Italian Revenue Agency April 29 issued Letter No. 121/2025, clarifying group VAT settlements in corporate restructuring. The taxpayer, a parent company of a corporate group consisting of 11 companies, controlled an 80 percent stake in a subsidiary and a newly established company, which was created from the subsidiary’s proportional demerger with a partial transfer of its assets. The subsidiary continued participating in the group VAT liquidation while the new company handled VAT independently for December 2024. The taxpayer sought to include the new company in the group VAT liquidation from fiscal year 2025. The Tax Agency clarified that the ...