- The Cassation Court confirmed that maintenance and renovation costs on leased property can be deductible and support VAT recovery if they have a real link of instrumentality/inherence to the business activity.
- Ownership of the property is not decisive: even works on third-party property may qualify if the premises are used, or intended to be used, for the enterprise’s activity.
- The distinction between ordinary and extraordinary maintenance is not determinative for tax deductibility/VAT recovery; the key test is the concrete connection with the business.
- The same principles apply for direct taxes (IRES/IRAP) because the cost deductibility rule follows the general business-income principle of inherence.
- The court stressed that the factual assessment must focus on whether the works were functionally related to the economic activity actually carried out or reasonably intended by the taxpayer.
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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