Who can claim VAT refunds

Latest update: 12/12/2020

VAT refund applications can be submitted by the following parties:

  • resident entities
  • non-resident entities with a fixed establishment in Italy or that appointed a tax representative or registered for VAT directly.

Input VAT paid on any goods or services may be refunded, provided that the right to deduct exists. This means that the business must carry out taxable transactions. No deduction can be made on the input VAT paid to make tax-exempt supplies.

A flat-rate VAT deduction applies to certain supplies for mixed private and business use.

When taxable entities carry out both taxable and exempt transactions, they may deduct the VAT paid on purchases in proportion to the ratio of taxable transactions to the sum of taxable and exempt transactions, pursuant to Article 19-bis of Presidential Decree No 633 of 1972.