- Italy’s draft legislative decree would extend the VAT deduction deadline to two years after the year the right arises.
- This is a major relaxation from the current rule, which generally requires deduction by the VAT return deadline for that year.
- Example: VAT on a 2026 invoice could be deducted until 30 April 2029 instead of 30 April 2027.
- The change would give businesses more time for invoice and accounting checks and reduce the risk of losing deductions.
- The decree would also align year-end invoice treatment with a recent CJEU ruling, allowing some early-2027 invoices for 2026 transactions to be deducted in the 2026 return.
Source: taxathand.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.
Latest Posts in "Italy"
- VAT Timing Rules for Property Exchange Default: Publication Date of Transfer Judgment Counts
- Erroneous VAT Invoice Remains Due Unless Corrected or Tax Risk Is Eliminated
- Italy Extends Deadline for Recovering Input VAT
- Business Transfer Not Subject to VAT Without Intermediation
- Italy’s Supreme Court Confirms 10% VAT for Waste Brokerage Services
