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Italy VAT on bad debts

  • Feb 17, 2016 | Richard Asquith

Italy VAT on bad debts

Italy has loosened the rules around VAT on bad debts in its 2016 Stability Law (budget).

The changes include:

  • The tax authorities will grant bad debt relief earlier in recovery court proceedings
  • New rules for the recovery of VAT on bad debts for continuous supply contracts
  • Output VAT may be recovered on a customer debt when the bankruptcy procedures launch – rather than on their ending as previously

VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He can be contacted at: He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.