Italy’s Supreme Court upholds VAT pro-rata treatment for bar videogame income

Italy’s Supreme Court rejected a bar operator’s appeal over VAT treatment of income from third-party videogames at its Pistoia premises. The dispute concerned the 2012 tax year; the court held that the VAT pro-rata applies where taxable and exempt activities are carried out together, and found the machines’ income and continued installation relevant to whether the activity was merely ancillary.