IVA Group, Clarifications on Revenue upon Entering an Incumbent Company

The IVA group, the new entry rules are distinct and non-restrictive. The Revenue Agency clarifies this in Resolution No. 30 of 2021. The explanations relate to the continued entry of a company that was already in place when the VAT group was created but with financial, economic and regulatory restrictions defined by the law that was put in place later.

Group value-added taxPursuant to Resolution No. 30 of May 7, 2021, the Revenue Agency provides clarifications on the rules for i New entries in itinere from existing topics For the group constitution itself.

The cases taken into consideration are those of a Financial, economic and regulatory constraints Required by law.

Specifically, the following aspects are examined:

  • The Actual entry date From a new topic;
  • The Nature of norm (systematic or anti-avoidance) Which specifies the requirement to own participation (at least) as of July 1 of the previous year;
  • Health Clarifications Refer (i) in the publication of October 31, 2018, Issue. 19 / e regarding entry into the VAT group of a newly established company, wholly owned by a person belonging to the group which is the reason for the transfer of the business unit and (2) in accordance with the principle of Law No. 16 of September 14, 2020, in connection with the partial separation of the parent company of the VAT group in favor of a newly created company which exclusively includes subjects already included in the vicinity of the same group;
  • The start date of the deadline stipulated in Article 70 fourth, paragraph 5, second sentence, of the VAT Decree for submitting the inclusion declaration.

IVA Group, Revenue Agency clarifications regarding entry into an existing company

In providing clarification on New entry into the VAT group For a company that was already in place at the time this group was created but without restrictions provided by law, in Resolution No. 30 of May 7, 2021 Revenue agency refers to the regulatory framework of reference.

Revenue Agency – Decision No. 30 of May 7, 2021
The value-added tax group – New subjects entered into the group – Article 70 fourth, paragraph 5, of the Presidential Decree of October 26, 1972, No. 633.
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To establish VAT group rules It is the title V-bis of the VAT decree, specifically Articles 70 bis And what follows.

Discipline is completed with Decision of the Minister of Economy and Finance on April 6, 2018, Which implements the discipline concerned.

They are allowed to enter the VAT group if they are satisfied Two conditions:

  • The existence of a direct or indirect control relationship between the taxable persons, which is determined according to Article 2359, Paragraph 1, No. 1) of the Italian Civil Code (the so-called control by law);
  • The permanence of the aforementioned bond at least From July 1 of the previous year.

New topics are introduced in the year following the occurrence of economic, regulatory and financial constraints.

Regarding the new entries andValid dateTwo conditions must be observed that must be fulfilled:

  • Which – which Goal, Or the existence of a controlling interest under the law;
  • Which – which Thunder StormThat is, the presence of control on July 1 of the previous year.

As emphasized in the practice document of the Revenue Agency:

“First and foremost, as mentioned above, based on the regulation of the entire VAT group, there is a clear will of the legislator to avoid merging into a single taxable person for entities connected only by occasional and temporary relationships.”

Among the explanations of financial management, one also relates to Predictability of entry The following year for companies whose requirements were verified after July 1.

In this regard, the practice document expresses itself strictly on Effective time Participate in the group.

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In fact, the decision states that:

“In this regard, it should be noted that the time requirement referred to in Article 70 ter, paragraph 1, of the VAT Decree, although it is inspired (as mentioned above) from the causes of financial caution is, in the opinion of the writer, of a structural nature. Therefore, this requirement is not subject to revocation even in the presence of certain circumstances that exclude the existence of occasional or temporary restrictions or the absence of potential benefits for VAT purposes. “

Even in circumstances that might suggest a stable relationship and, therefore, an entry Not to be expected.

VAT package, there are no penalties for new entries before May 7, 2021

After calling in the reference rules governing new entries for a company that was already in place at the time of the creation of the VAT group, the decision of May 7 calls for important clarifications about Previous practice documents.

Specifically, the Tax Administration believes that the conclusions received do not conflict with the explanations contained in Circular No. 19 / E of 2018, relating to entry into a VAT group for a newly registered company, which, however, has received Granting the company branch By a party that actually belongs to the group.

The same, in the current case, is Wholly owned From the same.

at Chapter 1, in § 3.1.1 The above practice document clarifies that the risk of inclusion, in a single taxable person, of entities associated with occasional or temporary restrictions is not present in the premise Companies established from July 1 to November 15, 2018.

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However, the case is limited to the fact that the companies in question must be the recipient of a transfer of a business unit by a company that already owns Requirements for admission to the value-added tax group.

In the hypothesis in question, in fact, there is the necessary character of the stability indicated inArticle 70 bis third of Presidential Decree No. 633 And under Article 1, Paragraph 1 of the Value Added Tax Ordinance.

Moreover, in accordance with the provisions of Article 70 fourth, paragraph 5, second sentence, of the VAT Decree, the listing declaration must be submitted. On the ninetieth day After that the bond was created.

In the final part of the practice document, the tax authorities believe so No penalties should be applied For people who have adopted behaviors that are not in line with the provisions of the decision.

Indeed, the text affirms that:

“Given the new features of some of the clarifications presented with this decision, it is believed that it is in compliance with the principle of protecting trust and good faith stipulated in Article 10 of Law No. 212 of 2000, which contains the statute of taxpayer rights, there are conditions for excluding the application of penalties in case of The existence of cases of entry of “new” subjects in the VAT group that was already created prior to the publication of this document is inconsistent with the above-mentioned explanations, if the mentioned entries have actually resulted in a tax advantage for the group. “

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