- The ordinary pro rata VAT method, based on turnover, can be replaced by an alternative method only if it is more precise and adequately demonstrated (Cassation order no. 5892/2026).
- The 2023 tax reform (law no. 111/2023) allows for alternative criteria to better reflect the actual use of goods and services for taxable and exempt operations.
- The ordinary method is the default but not mandatory; taxpayers may use a general pro rata if it is easier, but must prove the alternative method’s greater accuracy.
- Both taxpayers and tax authorities must demonstrate the superior precision of any alternative method used over the ordinary one.
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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