Quarterly VAT credits transferred to the Group tax filing system

According to the Art. 12 – sexies of DL 34/2019 there should be the possibility to transfer the quarterly VAT credits to the Group tax filing system in order to offset them with the Corporate income tax due by the parent company.

In this regard, note that Article 7, paragraph 1, lett. b) of Ministerial Decree 1 March 2018 allows the companies participating in the Group tax filing system to offset the Corporate Income Tax (IRES) due by the parent company with eligible credits up to EUR 700.000.

Until now, the Italian Revenue Agency has always recognized as legitimate credits for the compensation only the amounts resulting from the Annual Vat Return. But, according to the new Art. 12 – sexies of DL 34/2019 both categories (annual and quarterly) have been now equated.
The new provisions will be applicable starting from the quarterly VAT refund related to the first quarter in 2020, so with the TR Model expiring on April 30th 2020.

If all the consideration abovementioned will be recognized it will be necessary to clarify the conditions that legitimize the transfer of the VAT credit. In particular, in addition to the compliance with the conditions set by Article 38-bis of Presidential Decree 633/72 it will be necessary to understand if some capital requirements have to be complied. Furthermore, a change is expected regarding the structure of the TR Model.