Italy

Is the Italian limitation to the deduction of input Vat on cars consistent with the Sixth Directive?

Article 17 of the Sixth VAT Directive (Directive 77/ 388/EEC of 17 May 1977) states that, in so far as the goods and services are used for the purposes of his taxable transactions, the taxable person shall be entitled to deduct, from the tax which he is liable to pay the value added tax due or paid in respect of goods or services supplied or to be supplied to him by another taxable person.

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