- The EU Court of Justice ruled on March 12, 2026, that national laws excluding VAT deduction for entertainment and representation expenses, such as free event tickets given to clients, are compatible with the VAT system.
- The case involved a Spanish company denied VAT deduction on tickets for sports and entertainment events given free to clients, with Spanish tax authorities and courts upholding the denial.
- The Court confirmed that the Spanish law, in force since Spain’s EU accession, lawfully limits VAT deduction under the “standstill” clause of the VAT Directive.
- The right to deduct VAT is a core part of the VAT system but can be limited by pre-accession national laws consistent with EU rules.
Source: fiscooggi.it
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"
- Surety Bond for VAT-Related Transactions: Cassation Confirms Proportional Registration Tax Applies
- Italian Tax Agency Clarifies Rules for Payment Terminals and Vending Machines’ Electronic Register Connections
- Intra-EU Supplies: 90-Day Rule Start Date When Goods Undergo Processing and Installation
- 10% VAT Rate for Supply and Installation of Photovoltaic Systems: Tax Benefits Explained
- Foreign Exchange Rates for February 2026 Published Online by Italian Revenue Agency
