- The EU Court of Justice declared the Italian rule prohibiting “shell companies” from carrying forward VAT credits as illegitimate, violating neutrality and proportionality principles.
- Despite this, without new coordinating legislation, recovering VAT credits from previous years remains uncertain and operationally problematic for businesses and professionals.
- The issue centers on how to reclaim VAT credits denied under a now-invalid rule, especially for past years.
- The 2026 VAT return reflects the new legal position, but previous forms (like 2024) still applied the old, now-illegitimate penalties.
- There is a pressing need for legislative action to clarify and enable the recovery of these VAT credits.
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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