- VAT deduction is allowed on purchases related to company liquidation activities as liquidation remains part of business activity despite changed operational purposes
- The Italian Revenue Agency confirmed in response 251 that companies can exercise VAT deduction even if their ordinary activity was previously exempt under article 10 of DPR 633/72
- A company in liquidation since July 2021 sought to deduct considerable VAT amounts on legal professional services received during ongoing litigation and debt recovery procedures
- The Agency clarified that liquidation phase operations can fall within business activities scope provided they aim at asset realization within timeframes necessary for liquidation completion
- Court of Justice EU established that procedural changes in liquidation do not affect the economic nature of operations performed within the business framework
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.
Latest Posts in "Italy"
- VAT Reimbursement Right When Assessed VAT Goes Unpaid
- Italy: 10% VAT Denied on Photovoltaic Battery Storage Sale
- VAT Rate for Battery Storage Installation on Existing Photovoltaic Systems
- Italy Preliminarily Approves Corrective Decree Covering the New VAT Code
- Italian Revenue Agency Updates Rules for Automatic Closure of Inactive VAT Numbers
