How to tackle Italian tax authority refunding Credit VAT Balance (VAT Liquidation Report for Italy)?
in Tax & Global
Summary:
How to tackle Italian tax authority refunding Credit VAT Balance (VAT Liquidation Report for Italy)?
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The VAT Liquidation Report for Italy has placeholders for Previous Period VAT Credit and Credit VAT Balance. If the company continuously has a Total Recoverable VAT on Purchases exceeding the Total VAT on Sales, then the Credit VAT Balance (and Previous Period VAT Credit) grows every tax reporting period. At year end the Italian tax authority is requested to refund the accumulated Credit VAT Balance. But how can you make sure that, after the refund has happened, the Credit VAT Balance drops to 0 again?
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