- The EU Council has extended the 60% non-deductibility of VAT on motor vehicles in Italy until December 31, 2028.
- The general rule allows only 40% VAT deduction on motor vehicles, regardless of fuel type, including electric cars; electric bikes are exempt from this limitation.
- The limitation applies to all road motor vehicles (excluding agricultural/forestry tractors) under 3.5 tons and with up to 8 passenger seats (excluding the driver).
- Motorcycles for private use with engines over 350cc are totally non-deductible for VAT.
- Full VAT deduction is possible only if the vehicle falls outside the listed categories and strict proof of business relevance (inerenza) is provided.
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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