- The EU Court of Justice emphasizes that the right to deduct VAT cannot be limited unless there is fraud or abuse.
- The right to deduct VAT is linked to downstream operations subject to tax.
- The Italian Supreme Court ruled that the nullity of a contract can impact VAT deduction if invoked fraudulently or abusively.
- In a specific case, the nullity of a contract due to a conflict of interest of a notary public was challenged by Italian tax authorities.
- The Supreme Court decided that the nullity of the contract can affect tax purposes to protect higher interests.
- Conditions for denying VAT deduction include lack of proof of actual operation or evidence of abusive intent, with burden of proof on tax authorities.
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.
