VATupdate

Supreme Court decides on distinction between deposit and advance payment

  • it is up to the trial judge to establish, ”through the evaluation of intrinsic and extrinsic elements to the contract, whether the contractors intended to attribute to the sum paid (or to a part of it) function of mere deposit (confirmation), or also that of down payment or’ the price due “(Cass n. 8792/2007);
  • the payment of sums as a deposit is subject to VAT and the obligation to invoice only to the extent that such sums are “intended, by the will of the parties, ascertainable by the court on the basis of elements intrinsic and extrinsic to the contract,” to advance the price for the purchase of the asset “;
  • if in doubt Whether the sum of money has been paid as an advance on the price or as a deposit, it must be considered that the payment was made as an advance on the price

Source: eutekne.info

 

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