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
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