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Italy – The customer cannot deduct VAT incorrectly invoiced on an exempt transaction

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The Italian Supreme Court has recently ruled that VAT wrongly charged on an exempt transaction cannot be deducted by the buyer.

This decision is in line with the conditions for deduction under Directive 2006/112/CE. 

In the event that the purchaser still deducts this VAT, he could be fined an additional 90% of the amount of the wrongly deducted VAT.

Source: ASD Group

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