Italy promises increased VAT refunds
The Italian tax agency has committed a further €1 billion Italian Value Added Tax refunds. Italy has a reputation for being slow to repatriate VAT refunds and credits due to both resident and non-resident VAT businesses.
The new amounts will effectively double the amount allocated for refund in the first quarter of 2013.
Many businesses wait months and years for refunds on their Italian VAT returns. These ‘credits’ can arise from supplying zero-rated goods, but which has incurred purchase VAT. It is a particular problem for non-resident companies providing intra-community supplies from Italy, and which suffer large input VAT bills. The Italian tax authorities will often delay such refunds for many years.