- The verification of the relevance and instrumental nature of an asset to the taxpayer’s activity is required for VAT deduction under art. 19 of DPR 633/72.
- This requirement also applies to flat-rate VAT refunds on vehicles as per art. 1 of DL 258/2006, following the ECJ ruling in case C-228/05 (“Stradasfalti”).
- The principle was reaffirmed by the Italian Supreme Court in ordinance no. 3950 of February 22, 2026, consistent with previous rulings.
- In the case at hand, the appellate judge’s decision was not upheld because they failed to verify this requirement, relying instead on a presumption.
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.
Latest Posts in "Italy"
- Italian Supreme Court Rules on VAT for Land Sales with Buildings Set for Demolition
- Public Law Associations Providing Paid Services Are VAT Taxable, EU Court Rules
- New Online Service to Verify Registered Tax Representatives on Italian Revenue Agency Website
- Assignment of Property to Shareholder Not Subject to VAT, Rules Italian Supreme Court in 2026
- VAT Rules for Third Sector Entities: General Principles and Key Distinctions from Income Taxation
