- The Italian Revenue Agency issued a letter clarifying VAT deduction on imported raw materials.
- An Italian pharmaceutical company sought clarification on VAT deduction for materials provided free by a client.
- The Tax Agency found that EU and Italian VAT laws allow deductions if importation costs affect product pricing and support taxable activities.
- Legal ownership is not relevant for VAT deduction if the importer uses goods for taxable business activities.
- The taxpayer can deduct VAT for imported goods used in drug production and sales.
Source: news.bloombergtax.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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