VAT reciprocity with Italy
HMRC has contacted the CIOT and other stakeholders with the following update on VAT refunds from the Italian tax authorities for UK businesses without an Italian establishment:
Following successful negotiations of a bespoke reciprocal agreement with the Italian Government, UK businesses not established in Italy will be able to claim refunds of VAT paid on goods and services in Italy relating to their business activities. UK businesses can claim these VAT refunds under the EU’s 13th Directive process. Tax representatives will not be required to make these claims.
The agreement will have retrospective effect from 1 January 2021. Claims submitted on or after this date to the Italian Revenue Agency (Agenzia delle Entrate) will be considered valid. All claims for VAT refunds must meet the eligibility criteria and application requirements set out by the Italian tax authorities to be paid. For details on how to claim a VAT refund, visit the Agenzia della Entrate website.