Interesting … the right to deduct VAT is possible only where the relevant transaction is subject to VAT.
In other words, if a supplier wrongly applies VAT to a transaction that is not subject to VAT, the violation is subject to a more severe penalty than the penalty applicable where errors are made on transactions relevant to VAT whose amount was not properly determined.
Source BDO
Latest Posts in "Italy"
- Italy: VAT Refund for SICAF on Demolition and Urbanization Costs
- Italy: New Tax Codes for Voluntary Disclosure and Combined Penalties
- Italy: VAT Refund on Third-Party Goods Requires Asset Instrumentality
- Italy: Supreme Court Rules VAT Credit Not Lost for Formal Irregularity
- Italy: New Consolidated VAT Act Effective January 2027
