Order No. 23312 of 2024: Limits of VAT Variation and Restructuring Agreements

Order No. 23312 of August 29, 2024, issued by the Court of Cassation, provides important clarifications regarding VAT variation and restructuring agreements. The central issue concerns the one-year time limit for taxable amount variation, established by Article 26 of Presidential Decree No. 633 of 1972, and its application to restructuring agreements.

The Regulatory Context

According to Article 26, paragraphs 2 and 3 of Presidential Decree No. 633 of 1972, the seller of goods or provider of services has the right to deduct VAT following a modification of the taxable amount, provided that this variation occurs within one year from the taxable transaction. However, the Court has established that this limit does not apply to restructuring agreements, as the latter cannot be considered private agreements, being subject to judicial approval.

One-year time limit for the subsequent unenforceability of the credit due to agreement between the parties - Restructuring agreement - Attribution to a private agreement - Exclusion - Basis. In the context of a VAT adjustment note, Article 26, paragraphs 2 and 3 of Presidential Decree No. 633 of 1972, recognizes the right of the seller of goods or provider of services, after issuing the invoice, to deduct the tax corresponding to the modification of the taxable amount due to its subsequent non-payment or reduction. However, it provides for a one-year limit from the taxable transaction when the variation depends on a subsequent agreement between the parties, which is not extended to restructuring agreements, as these do not have a private nature, being subject to judicial approval.

Legal Implications

This ruling has significant repercussions for taxpayers and professionals operating in the tax sector. In particular, the distinction between VAT variations arising from private agreements and those related to restructuring procedures highlights the need for a correct assessment of the legal context in which one operates. Restructuring agreements, being subject to approval, require greater attention and cannot benefit from the same time-based advantages provided for VAT variations agreed upon between parties.

Final Considerations

In conclusion, Order No. 23312 of 2024 represents an important step forward in understanding the tax dynamics related to VAT variation and restructuring agreements. Its careful reading invites us to reflect on the importance of precision in managing tax practices and the need for an informed and aware approach in managing commercial relationships. Sector operators must therefore consider these regulatory developments to ensure compliance with current provisions.