- Voluntary liquidation represents the final phase of a company’s life but remains part of business activity with changed operational purposes shifting from current management to liquidation management
- Companies in liquidation can exercise VAT deduction on purchases even when their ordinary activity was previously classified as exempt under article 10 of DPR 633/72
- These principles are outlined in interpretative response number 251 published by the Revenue Agency
- The request was submitted by a company performing tax exempt activities that was entering liquidation phase
- The ruling clarifies that liquidation activities maintain business nature allowing for VAT recovery rights despite previous exempt status
Source: eutekne.info
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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