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Italy: Taxpayer has right to claim VAT refund directly from Treasury when customer involved in extended insolvency proceedings (Supreme Court decision)

Judgment no. 4900 of March 4, 2026

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march 12, 2026

The Supreme Court on March 4, 2026, held (judgment no. 4900) that a taxpayer has the right to claim a value added tax (VAT) refund directly from the Treasury when it has not been paid by a customer that has been involved in insolvency proceedings for over 10 years.

The refund will be allowed when it is not possible to issue a credit note to recover the VAT and when the taxpayer can reasonably demonstrate the impossibility of the creditor’s claim being satisfied during the insolvency proceedings.

Read a March 2026 report prepared by the member firm in Italy

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