- The Italian Supreme Court ruled that an ONLUS could deduct VAT only on purchases linked to taxable commercial activities, not on those used for its institutional/non-commercial activities.
- For non-commercial entities, VAT deduction requires that goods and services be used in operations subject to VAT; no deduction is allowed for exempt or excluded activities.
- Under Article 19-ter of DPR 633/72, deduction is allowed only for commercial or agricultural activities and only if those activities are kept in separate accounts from the main non-commercial activity.
- For mixed-use purchases, VAT is deductible only for the portion attributable to the commercial activity.
- The Court rejected the argument that this rule did not apply to ONLUS, confirming that the separate-accounting requirement and VAT deduction limits apply to them as well as to other non-commercial entities.
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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