With the Ruling reply no. 440/2022 dated 29th August 2022, the Italian tax authorities provided clarifications with reference to a case submitted by a taxpayer related to the the possibility of recovering the VAT included in payback amount, according to the Law Decree no. 78/2015, on the procedures related to the years 2015 and 2020, for which, as a matter of prudence, the relevant VAT had not been deducted by the taxpayer.
The payback subject to the ruling is not among those expressly regulated by the Budget Law for the year 2018 (Law no. 205/2017), by the article 1, paragraph 394, letters a) and b), but it is referred to the price reduction that pharmaceutical companies shall grant to the Regions in particular circumstances, in order to allow one of their pharmaceutical products not to be included in the C category, i.e. the category of products for which the National Health Service does not refund the expenditure incurred by the citizen. For this type of payback, the possibility of VAT recovery does not appear to be specifically regulated, either by positive law or by previous Italian tax authorities’ guidelines.
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Felice De Lillo, Partner, PwC Italy
Davide Accorsi, Director, PwC Italy
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Sara Regales Alvarez, Manager, PwC Switzerland