Italy Tax Agency Clarifies VAT Credit Carryforward After Joining VAT Group

The Italian Revenue Agency Feb. 11 issued Answer No. 24/2025, clarifying the carryforward of VAT credits of a company joining a VAT group. The taxpayer, a member of a VAT group, acquired a 75 percent stake in a company in the flexible benefits market. The acquired company operated under a special VAT regime for travel agencies and accumulated VAT credits before joining the group. The taxpayer sought clarification regarding whether the VAT cost credits could be carried forward and claimed by the taxpayer. The Tax Agency clarified that: 1) the costs incurred before joining the VAT group are considered a ...