- VAT cannot be deducted on non-existent invoices, even if the reverse charge mechanism is correctly applied.
- The economic reality of the transaction prevails over formal compliance; no real transaction means no right to VAT deduction.
- The principle of VAT neutrality requires a genuine economic chain; fake transactions break this chain and invalidate deduction rights.
- The reverse charge is a technical mechanism for tax compliance, not a protection against VAT penalties or fraud.
- The Italian Supreme Court confirms that VAT is deductible only if a real supply of goods or services has occurred between actual parties.
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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