VATLive > Blog > Italy > Italy provides COVID-19 VAT bad debt relief

Italy provides COVID-19 VAT bad debt relief

  • Jun 22, 2021 | Avalara

Italy has introduced a range of measures to help businesses still struggling with the economic effects of the coronavirus pandemic. 

This includes accelerated bad debt relief on reclaiming Value Added Tax already paid to the tax authorities on sales invoices. Previously, taxpayers had to wait until at least one year after court insolvency proceedings had commenced. Taxable persons may now issue a credit note and recover the VAT through their next Italian VAT return at the start of such legal proceedings. 

Other Italian proceedings include: delay of the new plastic bag tax; improvement to the ACE corporate relief.

Need a fiscal representative in Italy?

Non-EU businesses selling in Italy will need to appoint a fiscal representative alongside completing VAT registration and returns.
Fiscal representatives are responsible for the accurate VAT submissions of their non-EU clients.
Avalara offers a Fiscal Representative Service as part of its international VAT and GST Registration and Returns Service.

Need help with your Italian VAT compliance?

Researching Italian VAT legislation is the first step to understanding your VAT compliance needs. Avalara has a range of solutions that can help your business depending on where and how you trade. 

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Avalara Author
Avalara Author Avalara
Avalara helps businesses of all sizes get tax compliance right. In partnership with leading ERP, accounting, ecommerce, and other financial management system providers, Avalara delivers cloud-based compliance solutions for various transaction taxes, including sales and use, VAT, excise, communications, and other indirect tax types. Headquartered in Seattle, Avalara has offices across the U.S. and around the world in the U.K., Belgium, Brazil, and India.
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