Non-deductible VAT treatment
Use the supported Italian non-deductible VAT configuration and fiscal codes to distinguish the deductible and non-deductible treatment of purchases.
Represent the chosen tax treatment explicitly
Some purchase VAT may not be recoverable under the company's applicable rules. The supported configuration and fiscal codes provide a way to carry that treatment through the document and reporting workflow. Select the appropriate purchase code and verify the resulting classification rather than disguising non-deductibility by manually changing a headline tax total.
Review the effect in period reporting
VAT registers and periodic summaries use the recorded fiscal classification to distinguish the relevant amounts. Consistent source coding helps the accountant trace the treatment back to the original purchase. Review the configured policy and any special cases before enabling automatic document handling, particularly where the business uses partial deductibility rules.
What to know before you start
Your accountant determines deductibility and any pro-rata policy. Do not assume automatic annual pro-rata recalculation or retrospective adjustment of every historical purchase.
Practical questions
Does the software choose my legal deduction percentage?
No. Configure the appropriate treatment from the company's reviewed tax policy and use the supported codes consistently.
Where do I review the effect?
Inspect the source document, its tax codes and the corresponding VAT register or periodic summary.
Continue the workflow
VAT codes and fiscal mapping
Use the appropriate sales or purchase tax codes and available fiscal mappings so documents, electronic invoices and VAT reports share a coherent tax classification.
Periodic VAT summaries and returns
Review supported periodic VAT calculations, adjustments and accounting entries, with Italian IVP18 output where applicable and explicit separation from annual tax filing.
Supplier bills and expenses
Record supplier documents with the right vendor, dates, accounts and tax treatment, using direct forms or supported AI document-processing workflows.