- The Italian tax authority confirmed that VAT refund on works carried out on third-party property is allowed only if the works are actually instrumental to the taxpayer’s business/professional activity.
- For purposes of the VAT refund under Article 30(2)(c) DPR 633/72, “capital goods” can include assets held or possessed for a sufficiently long period under a legal title (e.g., lease or loan), not only owned assets.
- The case involved a SICAF that, through a consortium acting as a non-disclosed agent, planned demolition, remediation, and infrastructure works on an area partly owned by third parties and partly by the SICAF’s compartments.
- The authority reiterated that the mere existence of deductible VAT on such works is not enough; the works must be concretely functional to the taxpayer’s taxable activity to justify the refund.
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.
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