VAT Refund for British Entities

The VAT refund for British entities is regulated by an agreement between Italy and the United Kingdom, which came into effect on February 7, 2024.
This agreement establishes the mutual recognition of VAT refunds between the two countries.

🇬🇧➡️🇮🇹 As a result, entities based in the United Kingdom can submit a VAT refund claim in Italy if the conditions set forth in Art. 38-ter of Presidential Decree 633/72 are met.
This means that for purchases of goods or services made by British operators in Italy, it is possible to request a refund of the VAT paid, following the procedures established by the agreement.

📅 Important Deadline
VAT refund claims must be submitted by September 30 of the year following the reference period.
For the year 2023, the deadline is September 30, 2024.

🌍 Northern Ireland
For transactions involving goods between Northern Ireland and Italy, Union law continues to apply. In these cases, the refund procedure through the "portal" remains available, as it is for entities within the EU.
For services, however, refunds follow the procedures for non-EU entities.

🔍 Conditions for the VAT Refund
Taxable persons without a permanent establishment in Italy can request a refund of VAT paid within the country, provided the following conditions are met:

✅ No taxable transactions were conducted in Italy during the refund period, except for transactions subject to VAT under the reverse charge mechanism, transport services, related exempt operations (Art. 9 of Presidential Decree 633/72), and transactions carried out pursuant to Art. 74-septies of Presidential Decree 633/72.
✅ The purchases or imports of goods and/or services for which the VAT refund is requested must be related to the taxable person’s business activity.
✅ The VAT requested for a refund must be deductible in Italy, as per the domestic VAT rules.

It is no longer necessary to appoint a tax representative or register directly for VAT purposes in Italy.