On 07 February 2024, the United Kingdom and Italy entered into a reciprocal agreement on VAT refunds with retroactive effect to 1 January 2021. As a result of this agreement, UK companies not established in Italy may now be able to claim a refund of VAT paid in Italy, using the so-called “13th Directive” refund procedure (Directive 560/1986).
Claims for refund of VAT paid in respect of the 2021 and 2022 tax years are, in principle, time-barred (the deadlines for claims for refund through the so-called “13th Directive” procedure in Italy is 30 September of the year following the year in respect of which the VAT became chargeable).
However, the retroactive effect of the measure would make it possible to claim a refund of the VAT paid in Italy in respect of these two years.
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Source : Chartered Institute of Taxation
