Warranty costs VAT refund

The 2017 European law (Law No. 167 of 20.11.2017, published in Official Gazette No. 277 of 27.11.2017) introduced some new provisions on VAT aimed at ensuring a greater degree of protection and transparency in reimbursements.

In addition these provisions foresee a reimbursement of the warranty costs incurred by the taxpayer (in case a warranty is required for the purpose of granting the reimbursement).

In particular, it is provided a reimbursement of 0.15% of the annual amount of the warranty.

The lump-sum reimbursement will be made upon expiry of the deadline for the issuing of the assessment/correction notice or, in the case of issuing of the notice, at the moment in which the right to perceive the VAT credit reimbursement is definitively ascertained.

The new provisions will apply from 01.01.2018. In particular, the provisions regarding the lump-sum reimbursement of the warranty will be applied starting from the reimbursement requests made with the 2018 VAT declaration (FY 2017) and related to the first quarter of 2018.