VAT deductible on rechargeable mobile services
The taxable person who purchases, as an end-user, rechargeable mobile phone services can exercise the VAT deduction if indicated on the invoice separately from the consideration.
This was confirmed by the Revenue Agency with the Resolution n.69/E of 22 October 2020 in response to the request submitted by a company that had signed a contract for the provision of rechargeable mobile phone services subject to the single-phase regime art.74 paragraph 1 letter d) of Presidential Decree 633/72.
The company in question wanted to specify that the rechargeable SIM cards were purchased for its employees, the reason why it asks whether it is possible to deduct VAT in the light of the provisions of art.4, c.1 of DM 366/200. In the opinion of the applicant, therefore, the separate presentation of the taxable amount and the tax on the invoice to the taxable persons who are end-users of the service, should legitimize the deduction of the tax by the customer who receives the document. Otherwise the purpose of the rule itself would not be understood, since the separate display of VAT would have no effect and the reason why taxable persons would have to request the issue of the invoice with separate evidence if not to benefit from the deduction.
The Revenue Agency thinks that the art. 4 takes account of the national measures, allowed by Directive no. 2006/112/EC “to simplify the procedure for charging the tax or to prevent certain types of tax evasion or avoidance”, must be interpreted restrictively and to the extent strictly necessary to achieve this objective. Therefore, the tax authorities confirm that for the transaction described above, while remaining within the scope of Article 74, the mechanism of recovery and deduction of the tax is in place and that if this were not the case, the principle of VAT neutrality would no longer apply.