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VAT Deductions in Merger Leveraged Buyout Deals: Emerging Opportunities under Italian Case Law

P. Bricchetto

International VAT Monitor2025https://doi.org/10.59403/3aj1dqrarticle
ABDC B
Weight
0.50

What the paper says

In this article the author discusses two recent landmark rulings of the Italian Supreme Court of Cassation that reshape the VAT treatment of merger leveraged buyout (MLBO) transactions, overturning prior interpretations by the Italian tax authorities. The Court affirmed that special purpose vehicles (SPVs) established for MLBOs are, in principle, entitled to deduct VAT on transaction costs. This right, however, is subject to a key condition: the post-merger entity must qualify as a taxable person and be itself entitled to deduct VAT. These decisions open new pathways for recovering VAT – both retrospectively and for future operations – while challenging the Italian tax authorities’ long-standing formal approach, signalling a potential turning point in the interpretation of VAT rules.

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https://doi.org/https://doi.org/10.59403/3aj1dqr

Or copy a formatted citation

@article{p.2025,
  title        = {{VAT Deductions in Merger Leveraged Buyout Deals: Emerging Opportunities under Italian Case Law}},
  author       = {P. Bricchetto},
  journal      = {International VAT Monitor},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.59403/3aj1dqr},
}

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VAT Deductions in Merger Leveraged Buyout Deals: Emerging Opportunities under Italian Case Law

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.