VAT Deduction and Year-End Invoices: Tax Delegation in Conflict with the EU Court?

By Roberta De Pirro – Morri Rossetti e Associati

Taxpayers will be able to deduct the VAT indicated on purchase invoices related to transactions carried out in the previous year or in the tax period in which the corresponding tax became due, or in the tax period in which the invoice was received. This change, proposed in the fiscal delegation law to overcome the limitations of the current year-end invoice regulations, may, however, conflict with the principles expressed by the EU Court of Justice. According to the court, the right to VAT deduction can be exercised in the tax period in which the requirements of possessing the invoice (or an equivalent document) and the right to deduction coexist.

Source: ipsoa.it

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