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

The Italian branch of the Luxembourg-based asset management company is responsible for marketing, acquiring, and managing clients in Italy, as stated in [1]. 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, as clarified by the ruling of the Italian Revenue Agency mentioned in the article.

The VAT implication of the ruling by the Italian Revenue Agency, as stated in [1], is that the Italian branch of the Luxembourg-based asset management company is liable for VAT in Italy on the fees charged to clients because the branch is involved in the provision of the service by the head office. The ruling clarifies that the branch “intervenes concretely in the operations, performing a qualifying active role and operating with a certain degree of autonomy”, as mentioned in [2].