- The Italian Tax Authority (ITA) now allows SPVs in merger leveraged buyouts (MLBOs) to recover input VAT on transaction costs if the resulting company makes taxable supplies.
- This reverses ITA’s previous position, which treated SPVs as non-taxable passive holding companies and disallowed VAT recovery.
- For MLBO transactions before FY2025, companies must submit a specific Article 30-ter Claim to recover previously irrecoverable input VAT, rather than filing a corrective VAT return.
- The new guidance aligns with a 2024 Italian Supreme Court judgment supporting VAT deduction for SPVs in MLBOs.
Source: kpmg.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.
Latest Posts in "Italy"
- Italy: Supreme Court Confirms VAT Refund from Treasury for Long-Term Insolvent Customer Debts
- VAT Return: Calculating Deductible Tax and Pro Rata Results in Section VF for 2025
- 2025 VAT Balance Payment Deadline and Options for Deferral or Installments
- VAT on Professional Fees from a Dissolved Company: Effects of Relocation and VAT Closure
- Sending a Proforma Invoice via SDI Is Equivalent to Issuing a Final Electronic Invoice
