Corrective action 2017 – VAT deduction
The new provision, by reformulating art. 17-ter of Presidential Decree No 633/72, reduces the right to deduct the tax on goods and services purchased or imported, by exercising it at the time when the VAT becomes due and, at the latest, with the declaration relating to the year in which the right to deduct has arisen and to the conditions existing at the time when the law was created. So with reference to the tax year 2017, by April 30, 2018.
Consequently, art. 25 of the VAT Decree has been modified. With reference to the above mentioned modification, the accounting recording must be made during the period in which VAT becomes due, and in any case, within the stated time limit for submitting the annual declaration of the year in which the invoice has been issued, since the accounting recording of invoices itself is not sufficient to deduct the relevant VAT before the annual VAT return has been transmitted to the Tax Authority.
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