Italian Company in Voluntary Liquidation Can Deduct VAT on Purchases Despite Exempt Activities

Voluntary liquidation represents the final phase of a company’s life but remains part of business activity with changed operational purposes shifting from current management to liquidation management
Companies in liquidation can exercise VAT deduction on purchases even when their ordinary activity was previously classified as exempt under article 10 of DPR 633/72
These principles are outlined in interpretative response number 251 published by the Revenue Agency
The request was submitted by a company performing tax exempt activities that was entering liquidation phase
The ruling clarifies that liquidation activities maintain business nature allowing for VAT recovery rights despite previous exempt status

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.