- The Italian Supreme Court recognizes that the inactivity of a company alone cannot deny the right to VAT deduction.
- This decision aligns with European principles but is limited to harmonized taxes.
- There remains a conflict with the internal tax system regarding the importance of tax capacity.
- The Supreme Court addressed the relevance of the rules for non-operational companies concerning VAT deduction.
- According to Italian law, inactive companies are restricted from claiming VAT credit refunds or using them for compensation unless they meet certain operational criteria.
- The European Court of Justice opposes automatic limitations on VAT rights due to inactivity, except in cases of fraud or abuse.
Source: commercialistatelematico.com
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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