- The Italian Revenue Agency confirmed that the sale of a depreciable asset is excluded from the calculation of the VAT deduction pro rata. This decision pertains to a non-profit entity selling a property due to financial needs related to renovations. According to the law, sales of depreciable assets and certain internal transfers do not contribute to the pro rata calculation. The agency emphasized that including such sales could distort the true nature of the entity’s regular activities, as these sales are extraordinary and occasional. The decision aligns with previous responses, clarifying that assets used exclusively as a means for business activities do not define the nature of the business. The specific case involved a property initially used as a hotel, acquired through a bequest, and later reclassified following the hotel’s closure.
Source: eutekne.info
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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