- The Italian Revenue Agency issued Resolution No. 7/2026 clarifying input VAT deductibility for SPVs in merger leveraged buyouts.
- To deduct input VAT, the taxpayer must be a taxable person and use goods/services for taxable economic activities.
- Holding companies that only own shares and do not participate in management cannot deduct input VAT.
- Holding companies acting as SPVs in MLBO transactions may qualify for input VAT deduction if they meet the criteria.
Source: news.bloombergtax.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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