Holding companies can deduct all VAT related to vehicles made available to subsidiaries. This deduction is based on the authorization granted to Italy by the Council of the EU, allowing for a flat-rate limit on VAT deduction for motor vehicle expenses used exclusively for professional purposes.
This limit was effective until September 31, 2023. It doesn’t apply if the motor vehicles are used exclusively for business, are part of the company’s assets, or are used by agents and representatives of commerce. The holding can claim full VAT deduction when providing cars to subsidiaries, subject to certain restrictions.
Source: eutekne.info
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