In Italy, a bank guarantee is required in order to receive a VAT refund exceeding €30,000. For each quarterly VAT reimbursement requested by a VAT registered company, a VAT refund request (TR form) must be filed electronically and a bank guarantee with an Italian bank must be submitted. In some instances, where the refund requested is below €30,000, the bank guarantee requirement may be waived.
When the refund requested exceeds €30,000, a bank guarantee is requested for each of the quarters. This guarantee covers a period of three years and is submitted after the TR form has been sent to the Italian tax authorities. The amount of the guarantee is equivalent to the amount of refund plus interest for a three year period. The bank issuing the guarantee must be an Italian bank or an Italian subsidiary of a foreign bank.
When the refund does not exceed €30,000 it is possible to get a repayment without submitting a bank guarantee. A certificate must be issued and signed by the legal representative certifying a number of requirements such as social security, sales of shares or ratio of net capital and fixed assets in the balance sheet. The representative is responsible under criminal law for this information. In addition to this certificate, the company must have their annual VAT return certified as ‘visto di conformita’ , which confirms that VAT return and VAT ledgers (calculated during the year) reconcile with each other, it should also confirm that VAT ledgers reconcile with each issued invoice. An Italian certified chartered accountant can issue the ‘visto di conformita’