The Court of First Instance of Milan ruled on the VAT deductibility of costs incurred by a special purpose vehicle in a merger leveraged buyout transaction.
In this regard, the judges recalled the decision adopted by the Court of Justice of the European Union in Case C-249/17 (Ryanair) and the decision of the Italian Supreme Court of 16 July 2020 no.15239, which allowed the deductibility of input VAT paid on expenditures related to preparatory activities because instrumental acts for pursuing an economic activity, provided that the taxpayer is able to prove their link with the future revenues.
Source Taxand
See also C‑249/17 (Ryanair Ltd) – Input VAT recovery on costs relating to acquisition of shares
