- The Agenzia delle Entrate (Italian Tax Authority) clarified VAT treatment for “monetized soccida” (a type of livestock sharing agreement).
- Clarification was provided in response to an advance tax ruling (interpello) request.
- In a “monetized soccida”, the soccidario (party receiving the livestock) does not perform relevant VAT operations.
- The soccidario only receives the monetization of its share of the livestock’s growth as profit.
- VAT paid on related purchases cannot be deducted by the soccidario.
- This is because the downstream operations are outside the scope of VAT.
Source: ipsoa.it
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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