Italy Tax Agency Clarifies VAT Variation Note, Deduction Rules Related to Negative Invoices

The Italian Revenue Agency Feb. 2 issued Letter No. 29/2024, clarifying VAT variation notes and input deduction rules for negative invoices. The taxpayer operated as a seller of gas and electricity. It purchased gas from a distributor. 2022 and 2023 budget laws and other decree-laws enacted the Social Gas Bonus intervention, implemented by regulatory authority ARERA under the automatic recognition regime. Distributors, through sellers, were required to pay the bonus to individuals who qualified due to economic distress. The distributor could not pay the taxpayer amounts related to the bonus due to bankruptcy. The taxpayer inquired as to whether a ...