The Cedent’s Right to Charge VAT Paid for Facilitated Adhesion to the Incorporating Entity

• The cedent can charge VAT paid to the incorporating party.
• The right to deduction is granted to the recipient to ensure VAT neutrality.
• The Italian Revenue Agency has deemed the exercise of the right of recourse for higher VAT legitimate.
• In the case of a merger by incorporation, VAT billing can be done to the incorporating company.
• The company ALFA presented an inquiry regarding the legitimacy of the right of recourse for higher VAT.
• ALFA and the Italian Revenue Agency entered into an agreement with adhesion.
• BETA later incorporated GAMMA, which had been increased in capital by ALFA.
• ALFA questioned the legitimacy of the right of recourse for higher VAT after the completion of the agreement with adhesion.

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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