In order to establish whether the financial adjustments made in implementation of the TP adjustments represent the consideration for a transaction relevant for the purposes of value added tax, it is first necessary to verify the existence of a legal relationship with reciprocal benefits between the company. and its foreign subsidiaries and, consequently, to verify whether in the aforementioned relationship there is a direct link between the transfers made by way of TP adjustments and any sale of goods and / or provision of services rendered by the company. This was announced by the Inland Revenue with the response to ruling no. 884 of 30 December 2021.
Source: ipsoa.it
Latest Posts in "Italy"
- Italian Revenue Agency Updates Rules for Automatic Closure of Inactive VAT Numbers
- Cassation Ruling on Control Requirement for VAT Group Eligibility
- Italy and France Illustrate Two Different E-Invoicing Architectures
- Italy Expands Automated Checks for Closing Inactive VAT Numbers
- Inactive Companies and VAT Deduction: No Automatic Denial for Failing Operational Tests
