Transactions carried out by the foreign parent company – Italian permanent establishment not involved in the transactions – VAT refund

In its ruling of 13 February 2025, No. 33, the Italian Revenue Agency examined the procedures for recovering the deductible VAT surplus, by means of a refund claim, in the case of a non-resident entity with a permanent establishment in Italy.
In the case at hand, the non-resident entity supplied goods to customers resident in Italy and purchased those goods from an Italian subcontractor. VAT was charged by the domestic subcontractor, but the non-resident entity was denied the right to a VAT refund under Article 38-bis2 of Presidential Decree No. 633/1972, since taxable transactions had been carried out in the refunding State (the downstream supplies, subject to VAT in Italy).
It remains to be assessed whether the non-resident entity may submit the refund claim through the VAT return of its Italian permanent establishment.