Matteo Carfagnini’s comment in Italia Oggi
The Italian Supreme Court, with judgement no. 22608 of 9 August, ruled that input VAT on transaction costs, incurred by special purpose vehicles in MLBO transactions, is deductible.
The statement is relevant, given that it is the Supreme Court’s first pronouncement on the subject, in contrast to the – highly criticised – thesis of the Italian Tax Authority.
In particular, according to the Judges, the costs incurred by the special purpose vehicle, to carry out the acquisition and prior to the completion of the merger, are considered as preparatory to the business activity.
Considering the principle stated, taxpayers who prudentially have complied with the thesis of the Italian Tax Authority, shall therefore consider whether to request a refund of the non-deducted input VAT.
Link to the full article: https://lnkd.in/dbZ3aBHT
