- The Italian Revenue Agency has historically imposed many limitations on the tax treatment of expenses on third-party assets, but these have been mitigated by the Court of Cassation. Regarding VAT, the Court has clarified the right to deduct VAT for renovation or maintenance expenses on third-party properties if they are instrumental to business or professional activities, regardless of the property’s classification. The Court also ruled that taxpayers are entitled to request a refund of VAT on such expenses.
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.
