Italy VAT on bad debts
Wed 17th Feb 2016
Italy has loosened the rules around VAT on bad debts in its 2016 Stability Law (budget).
The changes include:
- The tax authorities will grant bad debt relief earlier in recovery court proceedings
- New rules for the recovery of VAT on bad debts for continuous supply contracts
- Output VAT may be recovered on a customer debt when the bankruptcy procedures launch – rather than on their ending as previously