In ruling no. 88 of 2026, the Italian Revenue Agency addressed the issue of utilizing the annual credit accrued by a VAT Group, excluding the possibility of transferring it to the national tax consolidation. The document fits within the framework of the relationship between VAT Groups and IRES consolidation and clarifies the limits on the usability of the surplus arising from the annual return. The case concerned a company that simultaneously held the role of VAT Group representative and consolidating entity. Due to significant investments and a substantial volume of non-taxable transactions, the Group anticipated the formation of a considerable annual VAT credit for 2025 and asked whether such surplus could be used, in addition to carry-forward or refund, also through transfer to the tax consolidation, with indication in line VX6 of the annual return.
The Taxpayer’s Position
In the ruling request, the company argued that the offsetting prohibition provided for the VAT Group did not prevent the transfer of the credit to the tax consolidation. In support of this interpretation, reference was made to the literal wording of the return instructions: while for line VX5 the offsetting prohibition pursuant to Article 4, paragraph 4, of Ministerial Decree of April 6, 2018 is expressly recalled, a similar warning does not appear with reference to line VX6, dedicated to credit transferred following the option for tax consolidation.
The Autonomous Legal Personality of the VAT Group: The Agency’s Position
The Italian Revenue Agency rejects this interpretation and bases its conclusion on the nature of the VAT Group as an autonomous taxable person, citing Title V-bis of Presidential Decree 633/1972 and the implementing provisions of the Ministerial Decree of April 6, 2018, reiterating that, following the formation of the Group, individual participants lose their autonomous VAT status and that the obligations and rights connected to the tax belong to the Group itself, through the representative. On this basis, the response emphasizes Article 4, paragraphs 3 and 4, of the Ministerial Decree of April 6, 2018. In particular, it is recalled that the annual or interim VAT credit accrued by the Group cannot be used for offsetting, pursuant to Article 17 of Legislative Decree no. 241/1997, against debts relating to other taxes or contributions of the participants. The reason for the prohibition lies in the difference in legal personality between the holder of the credit – the VAT Group – and the holder of the debt to the Treasury – the individual participant.
The Agency also recalls the general principle according to which offsetting operates, except for specific regulatory exceptions, only in the presence of credit and debit positions belonging to the same entity. In this perspective, resolution no. 140/E of November 15, 2017 is also cited.
Therefore, the conclusion reached by the Administration is that the VAT credit accrued by the Group cannot be transferred to the tax consolidation to be used for offsetting against IRES debts or other debts belonging to a different entity, even if participating in the same group and even if coinciding with the VAT Group representative. The methods of use therefore remain limited to refund, where the conditions pursuant to Article 30 of Presidential Decree 633/1972 are met, or to transfer to third parties, including individual participants, within the limits and according to the forms provided by Article 6, paragraph 5, of the Ministerial Decree of April 6, 2018.