Italy Tax Agency Clarifies Unilateral VAT Waiver Involving Creditor in Liquidation

The Italian Revenue Agency Oct. 15 issued Letter No. 203/2024, clarifying the tax consequences of a taxpayer unilaterally waiving a VAT claim it held against a company undergoing insolvency proceedings. The taxpayer sought to unilaterally waive a claim as unrecoverable and issue VAT variance notes, before its VAT creditor’s bankruptcy concluded. The Tax Agency stated that the taxpayer couldn’t issue the notes, because: 1) unilaterally waiving the VAT claim didn’t meet the conditions for modifying a taxable amount; and 2) the taxpayer was required to wait until the creditor’s bankruptcy procedure concluded to determine whether the claim was unrecoverable. [Italy, ...