Italy Tax Agency Clarifies VAT Variation Notes for Bankrupt Debtors

The Italian Revenue Agency Nov. 3 issued Letter No. 276/2025, clarifying VAT variation notes for bankrupt debtors. The taxpayer, a company, had a claim against a bankruptcy debtor for a supply of goods. The debtor entered into a preventative creditor arrangement under the Bankruptcy Law for payment of 10 percent of the claim. Before the arrangement terminated, the debtor’s judicial liquidation was opened, also specifying 10 percent payment. The taxpayer inquired about the issuance of a VAT decrease variation note based on full or partial nonpayment due to bankruptcy. Upon review, the Tax Agency clarified that: 1) the taxpayer needed ...