- The EU Court has ruled against the Italian rule on VAT deduction for invoices spanning year-end.
- VAT deduction must be allowed in the period when the right arises, even if the invoice is received the following year, as long as it is before the tax return deadline.
- The ruling rejects formalities that delay VAT deduction to the invoice receipt date, especially across tax years.
- The decision challenges the strict guidelines of the Italian Revenue Agency and prioritizes substance over form and the principle of neutrality over the cash principle.
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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