Italy Tax Agency Clarifies Right to Apply for VAT Refund After Business Transfer

The Italian Revenue Agency Aug. 24 issued Letter No. 432/2022, clarifying the right to apply for a VAT refund following a business transfer. A company, registered in Italy for VAT purposes, erroneously charged and paid VAT on transactions with a purchaser, who was subsequently denied a deduction for the VAT paid. The supplier subsequently ceased business operations, and its successor company sought a clarification on who was entitled to claim a refund for the overpaid VAT. The tax agency clarified that: 1) the supplier is entitled to claim a reimbursement of erroneously paid VAT, but must compensate the purchaser for ...