- The Italian Tax Authorities have published a ruling reversing a prior decision regarding the VAT relevance of supplies between Italian and UK branches or head offices of the same entity, where the UK establishment is a member of a UK VAT group.
- The new ruling states that supplies between Italian fixed establishments/head offices and VAT-grouped UK establishments/head offices are not relevant for Italian VAT purposes and must be disregarded under the FCE Bank case.
- Italian establishments without the right of recovery may recover input VAT through issuing a credit note or filing a special refund claim.
- Those who have treated a service to a UK VAT-grouped establishment as a cross-border supply may need to regularize their position.
Source EY
See also
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