- The requirements for applying the cash accounting VAT system under Article 32-bis of DL 83/2012 must be verified by examining the overall formal conduct of the taxpayer, including both the invoice annotation and compliance with declarative obligations
- The Italian Supreme Court’s decision highlights that the taxpayer’s formal conduct should be comprehensively assessed, not just based on invoice annotations
- In a specific case, the tax authority had charged a taxpayer with a VAT amount, arguing that the payment could not be deferred under the cash accounting system due to missing entries in the VAT declaration for 2013 and subsequent years
- The first instance judge ruled in favor of the taxpayer, noting the consistent behavior of including the cash accounting VAT annotation on invoices
- However, the Supreme Court found that the Regional Commission erred by recognizing conclusive behavior based solely on invoice annotations without a comprehensive examination of the taxpayer’s formal conduct, including annual declarations
- The court emphasized that for access to the special regime, all formal elements must be considered together, explaining how even partial omissions of these elements could be addressed
Source: eutekne.info
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.
