Clarifications on booking terms to deduct input VAT on purchases

The Italian Government issued a new Law last april which changed the booking terms in order to deduct input VAT on purchases. Changes entered into force on January, 1st 2017.

As there have been a lot of confusion on the application of said Law, the Italian Tax Authority issued important clarifications which have been reported into their Circular nr. 01/2018, with particular regard to transactions that took place in tax year 2017 for which the related invoice will be booked in tax year 2018.

As this matter could involve italian branches or subsidiaries of non domestic entities, please contact our Professonals for any further information on the above.