If your claim relates to a period of less than one calendar year but not less than three months, the amount you must apply for may not be less than EUR 400.
If your input VAT reclaim cover the period of one calendar year or the remainder of a calendar year, the amount must be minimum EUR 50.
Regarding upper limits, the amount that can be reimbursed without providing the guarantee and any obligation is up to a maximum of 30,000 Euro;
– refunds higher than 30,000 Euro can be obtained without providing the guarantee, by filing the yearly return with a certification of conformity (released by a CPA accountant) or the subscription of the supervisory body and the declaration in lieu of an affidavit attesting the presence of specific capital requirements;
– the guarantee (e.g. bank warranty) must be provided for refunds higher than 30,000 Euro only in case of risky situations, i.e. when the refund is demanded:
a) by subjects carrying out a business activity from less than two years, except for start-up innovating businesses, as provided by article 25 of Decree-Law no. 179 of 18 October 2012;
b) Subjects who were notified(in the two years before the reimbursement request, assessment or adjustment notices reporting, for each year) about a difference between assessed amounts and actual amounts, and those of higher reported credit:
1) 10% reported amounts if they are not higher than 150,000 Euro;
2) 5% reported amounts if they are higher than 150,000 but not higher than 1,500,000 Euro;
3) 1% reported amounts, or 150,000 Euro if the reported amounts are higher than 1,500,000 Euro;
c) by taxable persons who file the return without the certification of conformity or the alternative signature or do not file the declaration in lieu of an affidavit;
d) by taxable persons who ask for reimbursement of the deductible surplus resulting when the activity ceased.
The claim application must cover minimum 3 consecutive calendar months in one calendar year and not more than one calendar year, unless it represents the remainder of a calendar year.
The claim can relate to invoices not covered by previous applications but the invoices must be issued in the same calendar year.
The claims can be made quarterly, one claim per quarter, or annual.
The quarterly claim can only include documents issued in the relevant quarter.
Eligibility for refund
A foreign taxable person is entitled to recover Italian VAT if the following conditions are satisfied:
• The company is not registered or liable to be registered for VAT in Italy;
• The company does not have residence, seat or a fixed establishment in Italy (in the case of a branch with an Italian VAT number, a VAT refund may not be claimed under Directive 2008/09/EC for purchases made by the head office); and
• The company has not carried out any taxable supplies in Italy, except for:
- Certain tax-exempt cross-border transport and ancillary services; or
- All supplies of goods and/or services to a subject that is VAT- established in Italy at the time of the relevant supply who applies VAT via the reverse charge mechanism.
VAT incurred on hotel and catering services supplied during conventions linked to the business of the company may be recovered. VAT related to accommodation (restaurant, bar and hotel expenses) is 100% deductible, unless related to entertainment expenses.
Based on case law of the CJEU, it should be possible to deduct the relevant VAT paid on cars/fuel/car maintenance used for the company’s business. The deduction percentage set by Italian VAT legislation is 40% in the case of cars used for both private and business purposes and 100% if the vehicle exclusively is used for business purposes.
Following documents can be submitted with the claim:
- original invoices
- proof of payment of the invoices
- tax certificate that is showing the taxable status for VAT purposes, issued within last year
You can also submit electronic invoices.