KPMG in Italy (Davide Morabito and Giorgio Dal Corso) obtained an important ruling from the Italian tax authorities (no. 267/2020), that confirmed the right of the recipient to recover VAT charged late by the supplier, following a self-disclosure procedure.
The supplier had supplied goods subject to Italian VAT to another company but omitted to declare VAT on those supplies; to correct its Italian VAT position, the supplier made a subsequent self-disclosure, recharging the omitted VAT to its customer.
With the VAT ruling, KPMG requested to confirm that the recipient was entitled to recover the additional VAT recharged by the supplier following the self-disclosure, even though the ordinary deadline for the input VAT recovery had already expired.
The authorities confirmed that the customer is entitled to recover the Italian VAT recharged by the supplier. The right to recover VAT does not arise from the original tax point (i.e. when the original transaction took place), but from the date when the customer receives the debit note with the additional VAT; the right to recover VAT expires with the annual VAT return of the year when the debit note is received.
