Refund of input VAT for improvements on properties owned by third parties

The Italian Cassation judges have not reached a consensus on whether to extend the principle of VAT deduction to cover such cases. The Sezioni Unite, in previous rulings, established the right to deduct VAT for renovation or maintenance works on third-party properties, as long as there is a connection to business or professional activities.

However, conflicting opinions exist within the Cassation. Some judges argue that the right to reimbursement of VAT should be allowed under the same conditions as VAT deduction, while others deny the existence of such a right, citing specific provisions in the law.

The administrative practice on this issue is not entirely consistent, with some cases allowing the reimbursement of VAT for certain scenarios, while others deny it.

The matter has been referred to the Primo Presidente for consideration of whether it should be presented to the Sezioni Unite for a decisive ruling.

Source: eutekne.info

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