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Circulars 2/2010 - Compensation of VAT credits

Compensation of VAT credits

Article 10 of the Law Decree of 1.7.2009 n.78, converted with amendments by Law 3.8.2009 n.102, established that starting from 1.1.2010, the horizontal compensation of VAT referred to in article 17, paragraph 1 of Legislative Decree 9.7.1997 n.241, relating to annual credit or for periods shorter than one year, provides for new constraints regarding the timing and amount, as well as specific declaratory requirements relating to the issue of the compliance visa for compensation exceeding 15.000 euros per year.

The new provisions exclusively concern the offsetting of VAT credits with other taxes, social security and welfare contributions or other amounts so-called "horizontal" or "external" compensation.
For this reason, the "vertical" or "internal" compensation, ie VAT from VAT, remains unchanged, as well as the "horizontal" and "vertical" compensation of tax credits relating to other taxes.

This circular illustrates the topics referred to in the index, also in light of the circular of the Revenue Agency n.1 of 15.01.2010.

Topics index

  1. New constraints imposed by the legislator
    1. Obligations for the offsetting of VAT credits exceeding € 10.000
    2. Presentation of proxies F 24
    3. The new rules in extraordinary and consolidated transactions
  2. Compensation of VAT credits exceeding € 15.000
  3. Sanctions for non-compliance with the new constraints
    1. Sanctions for the unfaithful issuance of the compliance visa
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Circulars 2010

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