Businesses get £400m VAT refund from Italy | AccountingWEB

Businesses get £400m VAT refund from Italy

Multinationals are due to receive €500m (£418m) in VAT rebates from the Italian government, according to KPMG, after the Big Four firm complained to the European Commission about “unacceptable delays” in paying refunds.

Gary Harley, KPMG’s head of indirect tax at KPMG, said: “This is Italian VAT that the businesses involved have paid to their suppliers, who in turn have paid across the VAT to the Italian authorities. The affected businesses are due this VAT back in the form of a refund as they are in a net VAT repayment position. Taxpayers are currently suffering a significant cashflow penalty through Italy failing to refund VAT receivables for many years.”

There has never been any dispute...


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What about SMEs?

Adrastea | | Permalink

The article refers to 'multinationals' and states that 'the Italian government has set aside €1bn (£840m) for VAT repayments to large businesses'.  Any business could have paid Italian VAT and be entitled to a repayment, but the SMEs would probably have given up and written off the VAT amounts years ago.  Nevertheless I cannot believe that the Italian government is permitted to discriminate by size of business.