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VAT treatment in transactive agreements: the controversial issue of compensation for renouncing action

  • The treatment of VAT in transactive agreements is a controversial topic.
  • The VAT payable on the consideration received in a transactive agreement is determined by the consolidated orientation of the Revenue Agency.
  • The novation effect of the transaction is irrelevant in determining the VAT liability.
  • The Lombardy Regional Tax Office has confirmed this approach in response to a specific inquiry.


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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