The Supreme Court analyzes the deductibility of VAT payments incurred in the acquisition of goods or services within the framework of non-subject or subject or exempt operations, when such goods or services have provided an economic benefit that favors the general activity.
The Supreme Court issued, on December 20, 2022, judgment 1695/2022, in appeal number 1399/2021, in which it establishes doctrine in relation to the deduction of contributions fromVATsupported.
The question that presented objective cassational interest for the formation of jurisprudence consisted of "[…] Determining whether the deduction of the quotas ofVAT supported by a commercial entity in the acquisition of goods or services within the framework of non-taxable or taxable and exempt operations, when such goods or services have provided an economic benefit that favors the general activity […]".
The conclusion reached by the Supreme Court establishes the following jurisprudence in response to the question of cassation interest:
"a) The deduction of the quotas ofVAT supported by a commercial entity in the acquisition of goods or services within the framework of non-taxable or taxable and exempt operations, when such goods or services have provided an economic benefit that favors the general activity.
b) In particular, in this case it is the deduction of theVAT Satisfied with the provision of advisory services in an expropriation procedure with the aim of achieving a higher fair price than that initially recognized by the Administration, taking into account the nature of the expropriated asset and its direct relationship with the company's own activity.
c) There is a right to that deduction from theVAT supported when the good delivered or the service received to which it gives rise is related to or represents a general benefit for the taxpayer, even if the activity to which it is directed is exempt or not subject, provided that, in addition to this general benefit, which is undoubted here, the operations carried out by the person claiming the deduction, within the framework of his economic activity, constitute taxable operations, which in this case has not been disputed."
This is, moreover, the solution that is most respectful of the principle of fiscal neutrality, by virtue of which the taxpayer must remain free from tax expenditures in the form ofVAT due to the receipt of services provided by third parties that benefit their general economic activity subject, as a whole, to the harmonized tax in question.
You can consult this sentence in the following link: STS 4923/2022 of 12/22/22 .