In the case of sums paid under settlement agreements, the question of their treatment for VAT purposes may arise. According to administrative practice, in fact, in the event that the other party waives the ongoing or potential dispute against payment, there could be the assumption of “obligations to do, not to do or allow”, with the consequent taxability of the transaction.
Source: IPSOA
Latest Posts in "Italy"
- Italy Clarifies POS-Cash Register Integration Rules for Bowling, Amusement, and Restaurant Activities from 2026
- VAT Exemption for Police Training Courses: Rules and Exceptions Explained by Tax Authority
- Italy Allows SPVs to Recover Input VAT on Merger Leveraged Buyout Transaction Costs
- Italy: Supreme Court Confirms VAT Refund from Treasury for Long-Term Insolvent Customer Debts
- VAT Return: Calculating Deductible Tax and Pro Rata Results in Section VF for 2025
