Italy Tax Agency Clarifies Pro-Rata VAT Deduction on Depreciable Asset Transfer

The Italian Revenue Agency June 4 posted online Letter No. 165, clarifying the deduction calculation for depreciable asset transfers. A helicopter management and rental company operated with two distinct divisions. The company inquired as to the calculation of the pro-rata VAT deduction on the sale of helicopters by one of the divisions. The tax agency clarified that for the calculation of the pro-rata deduction of VAT, the amount of revenue on the the sale of investment goods used by the taxable person in his company is excluded. [Italy, Revenue Agency, 06/04/20]

Reference:
View Letter No. 165/2020. View Index. ...