- The Italian Supreme Court ruled that a buyer who paid for a property but did not receive it due to the seller’s bankruptcy must reverse the VAT deduction.
- The court stated that the VAT deduction is only valid when the tax is payable, which in this case was upon the signing of the final deed of transfer.
- The court also stated that when a transaction for which a VAT invoice has been issued is canceled, the buyer must record the change in their VAT records.
- The court’s decision is based on the principle that the VAT deduction is only valid when the transaction is completed.
- The court’s decision is consistent with previous rulings on the matter.
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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