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"
- Italy Uncovers €42.8 Million VAT Fraud in Luxury Car Trade Across Europe
- EPPO Uncovers EUR 42.8 Million VAT Fraud in Italy’s Luxury Car Market
- €42.8 Million VAT Fraud Uncovered: Luxury Cars and Assets Seized in Italy Investigation
- VAT Treatment of Photovoltaic Plant Sales: Mobile vs. Immobile Asset Classification
- Tax Office Denies VAT Refunds for Solar Installations on Agricultural Farms Due to Indeductibility Issues