Prompt recovery of VAT on outstanding receivables towards customers subject to insolvency proceedings – Law Decree “Sostegni bis” converted in law in the Official Gazette

Prepared by Luca Lavazza and Francesco Pizzo

In the Ordinary Supplement no. 25 of the Official Gazette, General Series, no. 176 of 24 July 2021, the law no. 106 of 23 July 2021, entitled “Conversion into law, with amendments, of the decree-law no. 73, containing urgent measures related to the COVID-19 emergency, for businesses, work, young people, health and local services”, has been published with effect from 25 July 2021.

After the conversion, the new wording of article 26 of the Presidential Decree n. 633/1972 on the recovery of VAT on outstanding receivables from customers subject to insolvency proceedings has been substantially confirmed.

As already anticipated in a previous Newsalert, 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.

The new provisions apply in relation to insolvency proceedings started after May 26, 2021.

Let’s Talk

For a deeper discussion, please contact:

Luca Lavazza

PwC TLS Avvocati e Commercialisti


Francesco Pizzo

PwC TLS Avvocati e Commercialisti