VAT reimbursement agreement between Italy and United Kingdom

With Resolution No. 22 published on 2.5.24 , the Italian Revenue Agency has officially recognised the agreement between Italy and the United Kingdom on the mutual recognition of VAT refunds paid in both countries.

The agreement entered into force on 7 February following the exchange of diplomatic notes between the Italian Embassy in London and the British Embassy in Rome.

All the legal conditions for the recognition of the reciprocity condition for the granting of VAT refunds have therefore been met with regard to purchases made by:

• by persons established in Italy in the territory of the United Kingdom
• by persons established in the United Kingdom on Italian territory.

In particular, in the case of persons established in the United Kingdom who do not have a permanent establishment in Italy and who have made purchases in the territory of the State, it will be possible to apply for a refund if the conditions of Article 38-ter of Presidential Decree 633/72 are met, which in turn refers to the conditions of Article 38-bis2(1) above.

It is therefore not necessary to appoint a tax representative in advance or to identify oneself directly for VAT purposes (Revenue Agency Resolution No. 7/2021).