Changes to the liquidation of registration tax on judicial acts, enacted through Legislative Decree 139/2024 implementing Law 111/2023 and effective January 1, 2025, are prompting scrutiny of Agency of Revenue practices, particularly regarding potential offsets against VAT credits arising from judicial liquidations.
The revised Article 57 of Presidential Decree 131/1986 (TUR) stipulates that registration is now executed, irrespective of tax payment, for judicial rulings mandating monetary payments, performance, or asset transfers, including provisions under Article 633 of the Code of Civil Procedure. The Agency of Revenue now directs tax payment requests to the party condemned to pay expenses or the debtor against whom an enforceable injunction has been issued. Critically, the updated law mandates notification of the tax assessment to all parties involved in the litigation, or to the creditor, establishing joint and several liability for the tax if collection efforts against the primary debtor fail.
This shift in responsibility and broadened liability has raised questions about the Agency of Revenue’s ability to offset tax liabilities. Specifically, legal professionals are analyzing whether the Agency of Revenue can utilize a creditor’s VAT credit originating from a judicial liquidation process to satisfy registration tax obligations imposed on other parties within the same case. The potential for such offsets, and the legal basis for it, remains a point of contention.
Recent guidance from the Agency of Revenue, as of August 2025, too addresses Tax Control Frameworks (TCF) within the insurance sector, and a separate ruling in October 2025 opened ZTL (Limited Traffic Zones) near airports to NCC (Rental with Driver) vehicles, citing principles of free competition. These developments, while distinct, underscore a period of active regulatory adjustments impacting various sectors.
The handling of tax liquidation notices requires careful consideration. According to guidance published October 25, 2025, recipients have three primary options: payment, self-defense, or appeal. Ignoring such a notice can lead to enrollment in collection and the imposition of collection fees. The correct management of these notices is crucial for protecting rights and minimizing penalties.
changes to VAT adjustments in judicial liquidations, effective June 6, 2025, through Decree-Law 73/2021, have introduced a dual system depending on when the procedure was initiated. Procedures started before May 26, 2021, adhere to previous regulations requiring a completed procedure and definitive distribution plan for VAT adjustments. Procedures initiated after that date allow for adjustments from the opening date of the proceedings, removing the prior requirements for completion and proof of claim. The decree specifies deadlines for issuing credit notes based on the type of judicial proceeding – bankruptcy, administrative liquidation, or concordat.
Individuals disputing Agency of Revenue actions can pursue recourse through the Tax Justice Court, as of February 20, 2025, seeking full or partial annulment of assessments or payment orders. The Agency of Revenue has not issued a public statement clarifying its position on offsetting VAT credits from judicial liquidations against registration tax liabilities.
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