- The Italian Supreme Court ruled that a company can claim VAT deductions even after being placed under compulsory liquidation.
- The court rejected the tax authority’s argument that the company’s activity ceased after the liquidation order, making it ineligible for deductions.
- The court emphasized that the company’s activity changed from exempt (insurance) to taxable after the liquidation, allowing for VAT deductions.
- The court also stated that the limited number of active operations after liquidation does not prevent the company from claiming deductions, as long as the purchases are related to an economic activity.
- The court’s decision aligns with previous rulings that recognize the right to deductions even without active operations, as long as the purchases are linked to an economic activity.
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.
