Having regard to the contractual terms of a sale and lease back agreement, such transaction could qualify either as a “single financial transaction”, exempt from VAT, or, as a “two-step transaction” consisting of (a) a sale of asset followed by (b) a supply of services by the buyer by way of leasing, both being, in principle, taxable for VAT purpose.
The Italian Tax Authority, with Resolution No. 3 of 3 February 2023, do not provide clear guidance with respect to the VAT treatment applicable to a sale and lease back arrangement.
Source: dlapiper.com
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