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