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Italy: New guidance on recovery of input VAT on SPV transaction costs in merger levered buyout

Guidance provides that SPVs can recover such costs.

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March 11, 2026

The Italian Tax Authority (ITA) issued new guidance on the recovery of input value added tax (VAT) on transaction costs incurred by a special purpose vehicle (SPV) in a merger levered buyout (MLBO).

The new guidance provides that SPVs are taxable persons for VAT purposes and can recover input VAT on such costs if the company resulting from the MLBO makes taxable supplies.

Read a March 2026 report prepared by the member firm in Italy

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