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Tax and compliance

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.

See how it fits your business.

Tell us how you work today, which countries you operate in and where the manual work piles up. Our team can help you choose the right starting point and prepare your setup.

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