Italian VAT

Italian VAT

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My client has bought a barn in Italy and is incurring 20% Italian VAT on most of the costs, including the planning fee and architect, and will also incur VAT on the development. The property will be a FHL.

Can any of this VAT be reclaimed?

Thanks,

Richard .

Replies (3)

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By Richardrussell
28th Feb 2007 13:50


Thanks Robert for your comments.

My client is not VAT registered - he has a company which is, but he personally is not - does this make any difference?

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By dylantherabbit
28th Feb 2007 17:34

vat status and claimability
In general terms, a non-vat registered trader cannot reclaim any VAT wherever in the EU it is incurred.

If the entity that purchased the barn is vat-registered in the UK, then they should be able to make a claim. If your client purchased the barn personally, and he is not vat registered, then he will not be able to reclaim the VAT.
If he or his company is trading in Italy and has registered for VAT there, then he will be able to reclaim the VAT.
Again, only VAT registered traders/companies can recover the VAT.
So you need to look at the actual entity incurring the VAT, and determine if that entity is VAT registered. VAT registered=OK, otherwise not.

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By dylantherabbit
27th Feb 2007 12:25

Italian Vat
Yes, this VAT can be reclaimed, just not vey quickly.
I have been in a similar situation with a firm I worked for several yars ago.
You need to submit a claim to the italian VAT authorities (under the 8th & 13th Directives); the forms will be in italian, and will need to be completed in italian and accompanied by the original invoices.
You will also need to obtain a certificate from the UK VAT authorities to indicate your status as a VAT registered organisation and send this with the claim.
Don't expect a rapid response though...our claim took over 4 years to get paid.
There are also specialised firms that will do all the work for you...for a slice of the action.

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