Ruling – VAT implications of an Italian branch of a Luxembourg-based asset management company

Summary

The Italian Revenue Agency has published a ruling regarding the VAT implications of an Italian branch of a Luxembourg-based asset management company. The branch, which has four employees, is responsible for marketing, acquiring, and managing clients in Italy. The head office in Luxembourg deals with the management of the assets. The ruling clarifies that the branch is involved in the provision of the service by the head office, making it liable for VAT in Italy on the fees charged to clients. The ruling further states that the branch “intervenes concretely in the operations, performing a qualifying active role and operating with a certain degree of autonomy”.

How will the ruling impact the operations of the Italian branch of the Luxembourg-based asset management company?

Based on the ruling by the Italian Revenue Agency mentioned in [1], the Italian branch of the Luxembourg-based asset management company will be considered a debtor for VAT purposes in Italy on the fees charged to clients. This means that the branch will be required to pay VAT in Italy on those fees. The ruling clarifies that the branch is involved in the provision of the service by the head office, making it liable for VAT in Italy. The impact of this ruling on the operations of the Italian branch is not explicitly mentioned in the article.

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