18/09/2025
VAT deduction ECoJ principle
Companies and professionals have their right of deduction at risk for AP invoices received or booked in the ERP after the 30th April following the period the VAT return is referred, according to the Italian Revenue Agency, meaning the VAT input deduction is prohibited using an integrative VAT return.
The European Court of Justice, through consolidation of practice interpretation, doesn’t align with losing the right of deduction due to formal requirements missing (booking), whereas the informal requirements are met (economic activity, inherent expense).
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