- The higher income determined from financial investigations is considered to include VAT.
- The Italian Supreme Court (Cassazione) ruled that, in cases of unreported business activity discovered through unexplained bank transactions, the reconstructed taxable amount is VAT-inclusive.
- This aligns with European Court of Justice guidance, emphasizing the principle of VAT neutrality.
- Practically, if additional revenue of €122,000 is assessed, it already includes €22,000 VAT and €100,000 taxable base, not subject to further VAT calculation.
- The decision has significant practical consequences, contrasting with previous practices that calculated VAT on top of the assessed amount.
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"
- Foundry Services for Commissioned Artworks Subject to 22% VAT, Not 5% Reduced Rate
- Applicable VAT Rate for Art Foundry Services: 5% or 22% for Commissioned Contemporary Artworks?
- 10% VAT Applies to Wood Chips and Sawdust Sales Regardless of Buyer’s Intended Use
- Understanding VAT Exemption for Businesses in Italy: Rules, Transactions, Invoicing, and Accounting Explained
- 10% VAT Applies to Wood Chips and Sawdust Sales Regardless of Buyer’s Intended Use
