- The Italian Revenue Agency issued guidance on VAT for court awards related to construction delays.
- A general contractor sued a subcontractor for costs due to work delays.
- The court ordered the subcontractor to pay a monetary award with interest.
- The taxpayer asked if VAT should be applied to invoices for the award.
- The Tax Agency clarified that payments were not compensatory as the contract was terminated and work completed.
- Payments were considered additional compensation for services and subject to VAT.
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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