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Beware of invoices: it is important to check the description.

The description on the invoice is of fundamental importance for the deduction of VAT and the deductibility of the cost. Invoices with generic descriptions are in fact considered by the Revenue Agency as non-deductible costs and the related VAT is non-deductible. In accordance with the recent Ordinance of the Supreme Court of Cassation No. 37208 filed on 11/29/2021.

The art. 21, paragraph 2, lett. "G" of Presidential Decree 633/72 (VAT Decree) provides that the invoice must indicate "the nature, quality and quantity of the goods and services involved in the transaction". A generic description of the goods or services sold determines the non-deductibility of VAT and the non-deductibility of the cost. This principle was confirmed by the Supreme Judges in the aforementioned Ordinance.  Not even the reference to a contract without a certain date and in any case generic, is valid to remedy the lack.

If invoices are received that contain generic descriptions or without precise references to the quality and quantity of the goods or services to which they refer, it is necessary to ask the supplier for their integration.

Therefore, an analytical description of the transaction on the invoice is necessary or it is advisable to stipulate a detailed reference contract with a certain date (perhaps exchanged via PEC) to make the operation unquestionable for the purposes of VAT deduction and cost deductibility. .

Please pay close attention to the above and always check the description used by the supplier on the invoice. It goes without saying that the utmost attention must also be paid to the description used in the invoices issued.

For any further information, the study remains available.

 

                                                                         

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