the Italian Tax Authorities via a ruling reply published yesterday (no. 52/2021) acknowledge the concept of “passive fixed establishment” and state that art. 53 of the EU Regulation no. 282/2011 even though referring to AR transactions may be mirrored also for AP transactions; what is important in order to check the intervention of the Italian FE is whether such FE is involved with its technical and human resources during the AP transaction and the fact that such FE is the real recipient of the supply of goods/services.
Source Agenzia Entrate
