Prepared by Luca Lavazza and Francesco Pizzo
Article 18 of Law Decree no. 73 of 25 May 2021 (Urgent measures related to the emergency from COVID-19, for businesses, work, young people, health and local services) amends the art. 26 of the Presidential Decree n. 633/1972 on the recovery of VAT on outstanding receivables towards customers subject to insolvency proceedings.
In particular, the new paragraph 3-bis has been introduced pursuant to which the right to recover VAT beyond the annual year limit (provided for in the second paragraph of the same article) is also applicable in the event of non-payment of the consideration, in whole or in part, by the customer, starting from the date on which the latter is subject to an insolvency procedure or from the date of the decree that approves a debt restructuring agreement as per article 182-bis of the Decree n. 267/1942, or from the date of publication in the register of companies of a certified plan pursuant to article 67, third paragraph, letter d), of Decree n. 267/1942.
On this point, the new paragraph 10-bis, included in the article 26, clarifies that the debtor is considered subject to insolvency proceedings from the date of the sentence declaring the bankruptcy or the act of compulsory administrative liquidation or the decree of admission to the procedure of arrangement with creditors or the decree that provides for the extraordinary administration procedure of large companies in crisis.
Finally, the new paragraph 5-bis requires the repayment of the recovered VAT if, subsequently, the consideration is paid in whole or in part.
As stated in the second paragraph of art. 18, the new provisions apply in relation to insolvency proceedings starting after May 26, 2021.
Let’s Talk
For a deeper discussion, please contact:
PwC TLS Avvocati e Commercialisti
Partner
PwC TLS Avvocati e Commercialisti
Director