Impact of Invoicing Without Payment: Understanding the Principle of VAT Formality

• VAT is due on invoices even without actual payment unless corrected promptly.
• Issuing invoices for non-existent or non-taxable operations requires VAT payment unless rectified or no risk of improper VAT deduction exists.
• The formal weight of invoices in the tax system is emphasized.
• The Court of Cassation clarified the effects of the VAT principle in cases of erroneous invoice issuance or non-receipt of payment.
• A company renounced a credit to cover losses but still issued invoices, fearing tax authority disputes.
• The company sought a VAT refund, which was denied by the tax authority.
• The Provincial Tax Commission rejected the refund request, and the decision was upheld on appeal.
• The court ruled that VAT on invoiced consultancy services must be paid.
• The principle of VAT and the impact of voluntary actions on tax determination were highlighted.

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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