Instrumentality and Relevance of Goods as Prerequisites for VAT Deduction and Refund on Vehicles

• The verification of the relevance and instrumental nature of an asset to the taxpayer’s activity is required for VAT deduction under art. 19 of DPR 633/72.
• This requirement also applies to flat-rate VAT refunds on vehicles as per art. 1 of DL 258/2006, following the ECJ ruling in case C-228/05 (“Stradasfalti”).
• The principle was reaffirmed by the Italian Supreme Court in ordinance no. 3950 of February 22, 2026, consistent with previous rulings.
• In the case at hand, the appellate judge’s decision was not upheld because they failed to verify this requirement, relying instead on a presumption.

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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