Italy Tax Agency Clarifies Transfer of VAT Credit on Business Unit Transfer

The Italian Revenue Agency Oct. 9 posted online an answer clarifying that a surplus VAT credit can be transferred where a company intends to transfer one of its branches to a newly established company. The answer clarified that: 1) the 2018 annual VAT credit and the VAT credit accrued for the current financial year can be transferred; 2) for businesses not managed with separate accounting, the surplus VAT can only be transferred upon advance request; and 3) the VAT credit transfer procedure didn’t need to be followed under these circumstances. [Italy, Revenue Agency, 10/09/19]

Reference:
View Answer No. 402/2019. ...