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Visto di Conformita

Italian VAT Refund

The Italian VAT refund can significantly impact a company’s financial health by injecting recovered funds back into operations, enhancing cash flow, and potentially improving profitability.

Navigating the complexities of the refund procedure can be a significant challenge to finance and tax teams. From the financial constraints of guarantees to rigorous submission deadlines and communication hurdles, the process presents numerous challenges that demand a streamlining approach.

In response to these challenges, Global VAT Compliance is offering our expertise in obtaining Visto di Conformita, a certification which is an alternative to the requirement for the guarantee.

 

Challenges and complexities of the annual and quarterly Italian VAT refund claims

In general terms, a company can recover the input VAT credit arising from periodical VAT balances through the submission of the annual VAT return or via quarterly VAT refund requests. 

 

Annual VAT refund deadline

30th April of the following year

 

Quaterly VAT refund deadlines

Q1 31st May

Q2 31st July

Q3 30th November

Q4 30th April

 

The VAT claims, however, can be cumbersome and often lead to the accumulation of refund claim procedures for many reasons.

 

 

Bank guarantee requirement & certificate compliance

 

For VAT credits higher than 30,000 EUR, it is necessary to provide alternatively:

 

– A guarantee granted by a qualifying bank, which usually requires a pledge over the amount refunded, or

– A guarantee in the form of security in government bonds or guaranteed by the State, or

– A guarantee provided (if certain requirements are met) by the parent company of the Group having a consolidated equity exceeding 250 million EUR.

 

The bank guarantee in particular is a time-consuming process which will not generate the cash until the pledge is over after three years.

Given the complex framework of these requirements, it is not unusual that a single wrong wording or choice of a bank leads to rejection of the claim by the tax authorities, as for example not every bank can provide the guarantee, heightening the risk of delays and financial strain.

Communication and Documentation Requirements

 

Upon receiving the VAT refund request, the Italian tax authorities check the effectiveness of the VAT credit by requesting the documents underlying the VAT credit (f.e. VAT ledgers, relevant invoices, and explanations of the main activities carried out in Italy).

 

Communication is typically done via email or certified post, requiring meticulous record-keeping, prompt responses and sometimes, physical meetings to speed up the process.

Submission Deadlines


VAT refund claims must adhere to specific forms and submission deadlines, including quarterly and annual VAT return due dates, necessitating careful planning and timely submissions.

In response to these challenges, Global VAT Compliance is offering our expertise in obtaining Visto di Conformita, a certification which is an alternative to the requirement for the guarantee. Obtaining Visto di Conformita through GVC ensures a seamless process free from risks associated with meeting demanding requirements.

Understanding Visto di Conformita

 

Visto di Conformità or VDC (in English “Compliance VISA”) is a certification attesting to the accuracy of the company’s VAT records.

Recognized by Italian law as a valid instrument to increase the chances of a successful VAT refund, Visto di Conformita, is an alternative to the obligation of meeting strict guarantee requirements.

Obtaining VDC requires a thorough certification process, conducted by an authorized intermediary, typically a certified public accountant or tax consultant, who carries out the checks on the VAT records followed by Italian tax authorities’ guidance no. 57/2009.

 

Assessments for obtaining VDC are related to, among others:

 

   The activity of the company;

   VAT compliance obligations (VAT return and VAT registers);

   Company’s eligibility to claim a refund and the nature of the VAT credit;

   Company tax pending against the Italian tax authorities;

   Input and output invoices in years in which the VAT credit is accrued

Request VDC Assessment

One of our VAT experts will make a preliminary assessment if your company is qualified for the VDC certificate. Visto di Conformita significantly increases the likelihood of a successful VAT refund as it provides an assurance to the Italian tax authorities that the VAT-related documentation, including VAT ledgers, VAT returns, and invoices, undergoes thorough review and certification by an authorised accountant who takes a responsibility for the assessment. While it does not offer a 100% certainty in obtaining the VAT credit, it offers considerable assurance to tax authorities regarding the accuracy and validity of the refund claim. 

 

How We Can Help

 

 
Collecting all relevant documents

 

We handle the gathering of all necessary documentation, including VAT ledgers compliant with Italian VAT law, invoices, and transaction records, streamlining the preparation process for obtaining Visto di Conformita.

Drafting VAT refund requests

 

Our experienced professionals draft meticulous VAT refund requests tailored to your company’s specific needs and circumstances, ensuring accuracy and compliance with regulatory requirements.

Applying for Visto di Conformita

 

We navigate the intricate application process for Visto di Conformita on your behalf, liaising with authorised intermediaries and overseeing the certification process to secure the necessary validation for your VAT credit claims.

Assisting in all VAT refund procedures

 

From initial submission to follow-up communications and queries from tax authorities, we provide comprehensive support at every stage of the VAT refund procedure, ensuring prompt and efficient resolution.

Liaising with tax authorities

 

Our dedicated team acts as your primary point of contact with tax authorities, facilitating smooth communication and ensuring all requirements are met on time.

 

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Why Obtain Visto di Conformita with GVC?

 

 

Eliminating the necessity to pursue guarantee requirements

Obtaining Visto di Conformita certification eliminates your company’s necessity to pursue guarantee requirements that can be complex to navigate. Traditionally, for companies aiming at obtaining VAT credits higher than 30,000 €, the complex requirements include, alternatively:

 

– A bank guarantee or

– A guarantee in the form of security in government bonds or guaranteed by the State;

– A guarantee provided (if certain requirements are met) by the parent company of the Group having a consolidated equity exceeding EUR 250 million

 

Obtaining Visto di Conformita through GVC means delegating these challenges to our tax experts who ensure a seamless process free from risks associated with cumbersome procedures and the related costs.

 

The high success rate in obtaining the VAT credit through certified validation

Visto di Conformita significantly increases the likelihood of a successful VAT refund as it provides an assurance to the Italian tax authorities that the VAT-related documentation, including VAT ledgers, VAT returns, and invoices, undergoes thorough review and certification by an authorised accountant who takes a responsibility for the assessment. While it does not offer a 100% certainty in obtaining the VAT credit, it offers considerable assurance to tax authorities regarding the accuracy and validity of the refund claim.

Expedited VAT refund process

Visto di Conformita eliminates the burdensome paperwork and lengthy procedures typically associated with the annual and quarterly VAT refund claims. In addition, the strict submission deadlines, the communication and documentation requirements often lead to the accumulation of refund claim procedures.

 

With GVC’s service for obtaining Visto di Conformita, the burdensome paperwork and lengthy procedures are fully streamlined, reducing your company’s VAT refund processing times.

Improved cash flow: No frozen bank guarantee funds

Visto di Conformita is an alternative to the time-consuming process of providing a bank guarantee which will not generate the cash until the pledge is over after three years. 

 

Without the burden of frozen bank guarantee funds, your company’s capital remains accessible, providing greater financial flexibility, supporting ongoing operations, and capitalising on time-sensitive ventures without delay.

 

 

For more information on Italian VAT refund process, reach out to one of our VAT experts.

 

 

 

IT VAT Refund Visa Eligibility Assessment Form

 

Fill in the form and one of our experts will contact you within 24 hours with an assesment result.

By clicking on “Submit” you agree to be contacted by Global VAT Compliance.

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