- Failure to pass the “operating test” does not automatically justify denying VAT input deduction; the tax authority must verify actual economic activity and that purchases were used for taxable transactions.
- The Puglia Tax Court of Second Instance (No. 1588/2026), applying EU Court principles, held that VAT deductibility depends on real business activity, not on meeting presumed revenue thresholds.
- Even pre-startup/preparatory expenses may be deductible if they are intended for taxable business operations.
- Recovery of the VAT credit cannot rely solely on automated assessment when the issue requires factual evaluation of the company’s real operativeness.
- The tax assessment must be adequately reasoned and structured to protect the taxpayer’s right of defense.
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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