Italy and UK reaches reciprocity Agreement on VAT Refund Claims

Following successful negotiations between the UK and Italian Governments, a reciprocal agreement has been reached regarding Value Added Tax (VAT) refunds for UK businesses operating in Italy. This agreement allows eligible businesses to claim refunds on VAT paid for goods and services related to their business activities in Italy.

• UK businesses not established in Italy can claim refunds on VAT paid in Italy under the EU’s 13th Directive process.
• Tax representatives are not required to make these refund claims.
• The agreement has retrospective effect from 1 January 2021, meaning claims made after this date are considered valid.
• One of the requirements for refunds is that the claiming business should not have conducted significant operations in Italy during the reference period.

APPLICATION PROCESS:

• Eligible businesses must submit their VAT refund application using Form IVA 79.
• The application should be sent to the Pescara operational center.
• The deadline for submitting refund applications is September 30 of the following year.

More details on how to submit the claim are available at link below:

• Business - How to claim VAT refunds - How to claim VAT refunds - Agenzia delle Entrate (agenziaentrate.gov.it)

SOURCE:

• VAT reciprocity with Italy (tax.org.uk)