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Ruling 487: Representative of the VAT Group based on turnover or revenues if the parent company is foreign

.. doubts about the criterion for identifying the representative of the collective tax body that will be created as a result of the exercise of the option by them. Specifically, clarification is requested as to whether the two parameters of turnover and revenues, to which the aforementioned Article 70-septies of Presidential Decree No. 633 of 1972 refers, can be considered alternative to each other for the purpose of identifying the person deputed to act as the representative of the VAT Group.

If the legal representative of the VAT Group is to be identified in a different subject than the one exercising legal control, for the purposes of identifying the representative, reference must be made to the higher value of the two data (turnover and revenues ) as resulting from the returns submitted for VAT and income tax purposes relating to the tax period prior to the establishment of the VAT Group.

The Inland Revenue confirmed that, for the purposes of establishing the VAT Group , legal control over VAT taxable persons established in Italy can also be exercised through a foreign subject resident in a country (in the specific case France) which has entered into an agreement with Italy which ensures an effective exchange of information.

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