- The Italian Supreme Court ruled that non-deductible VAT related to non-existent transactions is not a deductible business expense.
- Generally, VAT is non-deductible under the law, but if it cannot be recovered, it may be considered a business cost.
- The Court disagreed, stating that non-deductible VAT from fraudulent transactions is not a relevant business expense.
- Previous cases denied deductions for ransom payments and late payment penalties.
- In the examined case, the VAT was settled through an agreement, and its recovery is not allowed.
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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