- A new provision in Italian tax reform legislation allows taxpayers to choose when to exercise their VAT deduction right for invoices received in the first 15 days of January.
- Previously, the right to deduct input VAT for invoices received had to be exercised within the payment deadline for the related VAT, except for purchases made in the previous year, which could only be deducted in January of the following year.
- With the new tax reform, taxpayers can choose to deduct their input VAT in either December or January.
- For example, if an invoice for a purchase made in October 2023 is received in November 2023, it can be included in either the October or November VAT books, as long as it is accounted for by November 15th.
- Previously, invoices for purchases made in December could not be included in the December VAT books, but the new tax reform allows taxpayers to decide whether to include the input VAT in the December or January period.
Source: meridianglobalservices.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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