- The deduction of VAT for expenses incurred before starting or after ceasing a business does not follow uniform rules
- Two recent court decisions reached opposite conclusions, raising questions about interpretative consistency and the real protection of tax neutrality
- The Court of Cassation distinguishes between preparatory activities and cessation regarding VAT exemption
- The court ruled that VAT paid on purchases related to exempt operations is not deductible
- The principle of relevance is not enough for deduction; operations must also be subject to VAT
- Exclusive performance of exempt operations by a business results in total non-deductibility of VAT on purchases
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.
