An Italian regulation allows for the application of the split payment mechanism for gifts received by public entities or listed companies subject to split payment VAT. If the gifts are unrelated to the company’s regular activities, they are exempt from VAT, and split payment does not apply. However, if the gifts are related to the company’s activities, VAT applies, and the split payment mechanism may be used. The application of split payment may be excluded if the recipient does not make any payment to the supplier. The regulation also applies to the provision of free services subject to VAT.
Source: eutekne.info
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