The management company (SGR) of a reserved real estate alternative investment fund (Fund) is regarded as a VAT taxable person on behalf of the Fund for the transactions carried out.
The same comply with the obligations and exercises the VAT rights on behalf of the Fund.
When a management company is replaced throughout the year, the new one takes the same position and the VAT credit accrued by the Fund during the year flows into the VAT position of the replacing management company as from the effective date of the replacement.
With reference to the VAT credit accrued by the Fund resulting from the VAT return submitted by the management company during the past year, the following two options can be followed: (i) the VAT credit remains in the availability of the replaced management company or (ii) it flows into the VAT position of the replacing management company, net of the credit used.
In the latter case, the replacing management company can offset the VAT credit with VAT or different taxes or social contributions. Whether the VAT credit is offset with different taxes or social contributions for an amount exceeding euro 5.000 per year, an endorsement of conformity has to be made on the VAT return submitted by the management company replaced.
Source Italian Tax Administration – Letter ruling No. 421 of the 18 June 2021
Fausto Capello
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