- The Italian Supreme Court ruled that in case of incorrect VAT deduction due to an erroneous VAT rate, the cessionary or contractor can only deduct the amount due, not the entire amount paid.
- This ruling is not affected by changes made to the relevant legislation.
- The Court also confirmed that in case of incorrectly invoiced and paid VAT, the cessionary cannot claim a refund directly from the tax authorities if the seller has gone bankrupt.
- The cessionary must demonstrate that obtaining the refund from the seller is impossible or excessively difficult.
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.
