- The Italian Tax Authorities (ITA) have clarified that VAT on transaction costs in merger-leveraged buyout (MLBO) transactions, incurred by special purpose vehicles (SPVs), may be deductible if the costs are linked to the target’s taxable activities.
- Taxpayers can now recover previously non-recoverable VAT incurred in prior MLBO transactions by filing a refund request, rather than a supplementary VAT return, aligning with recent Supreme Court decisions.
- VAT refund claims must be filed by August 9, 2026, and require careful analysis of transaction details, proof of non-deduction, and potential adjustments to corporate income tax treatment.
Source EY
Latest Posts in "Italy"
- Italy Preliminarily Approves Corrective Decree Covering the New VAT Code
- Italian Revenue Agency Updates Rules for Automatic Closure of Inactive VAT Numbers
- Cassation Ruling on Control Requirement for VAT Group Eligibility
- Italy and France Illustrate Two Different E-Invoicing Architectures
- Italy Expands Automated Checks for Closing Inactive VAT Numbers
