VAT Adjustment Rules for Flat-Rate Regime Entry/Exit

• Taxpayers entering or leaving the flat-rate regime must adjust VAT.
• Taxpayers entering the flat-rate regime must adjust VAT to their disadvantage.
• Taxpayers leaving the flat-rate regime must adjust VAT to their advantage.
• Taxpayers exceeding 100,000 euros in revenue during the tax year must apply VAT to amounts exceeding the limit.
• The adjustment must be made in a single payment and applies to all goods and services existing in the company that have not yet been used on the date of entry into the regime.
• The adjustment of the VAT deduction must be made in the first annual VAT return filed after entry into the regime, that is, in the one relating to the year preceding the transition to the regime in question.
• For depreciable assets, including intangible assets, the adjustment must be made only if four years have not elapsed since the year of their entry into operation or 10 years from the date of purchase in the case of real estate.
• The VAT adjustment must also be made with reference to fixed assets of an amount not exceeding 516.46 euros and assets with a depreciation coefficient for income tax purposes exceeding 25%.

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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