Erroneous VAT Invoice Remains Due Unless Corrected or Tax Risk Is Eliminated

• If an association eligible for the Italian VAT exclusion regime under Article 4(4) of DPR 633/72 wrongly invoices VAT on services to members and does not correct the error, the VAT remains due.
• The Supreme Court confirms that anyone showing VAT on an invoice becomes liable for that VAT under the “invoice-based” principle, unless the invoice is properly corrected.
• Relief is available only if the invoice is rectified under Article 26 DPR 633/72, or if the risk of tax loss is definitively eliminated.
• The risk is considered eliminated only if the recipient never uses the invoice for input VAT deduction and returns it without accounting use, or if the tax authority definitively denies the recipient’s deduction right.
• A mere VAT return amendment by the issuer is not enough; the correction must concern the invoices themselves, not just the declaration.

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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