- Clarification on Theoretical VAT: The Italian Revenue Agency’s Letter No. 123/2025 addresses the treatment of theoretical VAT concerning recorded payments for non-taxable transactions, specifically in response to an inquiry from a shipping and logistics company.
- Non-Taxable Transactions Defined: The Agency stated that transactions such as the transport of goods related to export/import activities and services linked to customs procedures are deemed objectively non-taxable for VAT purposes, meaning payments from such transactions cannot be counted towards the 10 percent threshold for recorded payments.
- Exclusion of Theoretical VAT: It was clarified that theoretical VAT associated with non-taxable operations should not be included in the taxpayer’s recorded payment values, reinforcing that only actual VAT from taxable operations can be considered in these calculations according to current regulations.
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