The Italian authorities have extended (again) the due date to submit the Italian Spesometro return....
Italian bad debt will be easier to recover form now. Taxpayers do not have to wait until a decision is made by the Court to recover VAT paid to the authorities but not collected from the customer. There are also new bad debt rules on continuous supplies of services.
This change, along the posibility to recover bad debt from insolvent companies before the proceedings conclude, make it a lot safer for the businesses to operate in Italy.
Bad debt recovery rules on VAT apply where taxpayers pay VAT to the tax authorities on supplies for which the net and VAT amount have not been collected from the customer.
These rules change significantly from one EU country to another. In some jurisdictions like the UK, it is only required to wait for 6 months in order to claim input VAT on bad debts provided the debt is reflected in your books. On the contrary, countries like Spain require corrective returns, specific formalities on the credit notes and strict timing rules to recover this VAT. Italy remains however one of the strict countries even after the changes implemented this year.