At issue was deduction of VAT on purported costs incurred for intra-group services, which had been deemed non-deductible for tax as well as VAT purposes by the Italien Tax Authorities, as the taxpayer had not been able to prove the effectiveness and relevance of these services.
The Supreme Court found that in order for intra-group cost to be deductible (and VAT deductible) taxpayer must prove that, a real service have been received which is objectively determinable and adequately documented. This burden of proof had not been lifted by the taxpayer and VAT payments on the purported services were consequently non-deductible.
Source TP Cases
Latest Posts in "Italy"
- Standard VAT Rate Applies to Hearing Aid Repairs; Reduced Rate Only for Sales, Not Services
- Italian Tax Authorities Clarify VAT Duties of Fixed Establishments in EU Contract Negotiations
- No VAT Deduction for In-House Companies Donating Works Free to Sole Shareholder Municipality
- Updated VAT Deduction Rules for Non-Profit Entities: Objective Criteria for Mixed-Use Purchases
- Italy’s Customs Data Hub Reform: Opportunities and Challenges for SMEs and Tax Compliance in 2025
