After Brexit, Italian and British traders claiming refunds for value-added tax paid on commercial purchases were required to appoint local Vat representatives in both countries. That’s because leaving the European Union, as of February 1, 2020, the United Kingdom of Great Britain and Northern Ireland has been considered a third country to the EU. Anyway, for a transitional period ending on 31 December 2020, the United Kindom continued to operate as a member State for customs, Vat and excise purposes.
Thanks to the agreement reached between Italy and the United Kingdom on February 7 on Vat refunds paid in relation to transactions between the two countries, Article 38-ter of Presidential Decree 633/1972 - which extends value-added tax procedures granted to EU entities to third countries under conditions of reciprocity - will now apply retroactively from January 1, 2021. As regard, the Italian Revenue Agency clarified the issue in Resolution No. 22/E of May 2.
The importance of reciprocity - In short, thanks to the reciprocity agreement, Italian and UK traders will no longer need to appoint a local Vat representative to act on their behalf. Instead, they will be able to apply directly for vat refunds, subject to specific reciprocity rules.
Clarification of Resolution No. 22 - In particular, in light of the Agreement, the practice note clarifies that Italian traders can apply for a Vat refund in the UK under the country's rules, while UK traders can apply for a Vat refund if the conditions of Article 38-ter are met. In addition, applications must be sent in accordance with the instructions set out in the 2010 decision of the Director of the Italian Revenue Agency.
The new application procedure - In detail, in order to apply for a refund of “non-EU” VAT in Italy, Uk economic operators will henceforth have to submit a specific application form, called “Form 79”. The required documents must be submitted to the Italian Revenue Agency (Agenzia delle Entrate - Centro Operativo di Pescara Rimborsi fiscali per i non residenti - Via Rio Sparto n. 21 - 65100 Pescara - Italy) by September 30 of the year subsequent to the year to which the request refers.
Source - Fiscooggi