Italian Tax Authority clarified in Ruling No. 374/2023 that a Dutch company’s fixed establishment in Italy, which managed customer inquiries, orders, stocks, deliveries, and contributed to product development and quality control through seven employees, is considered a VAT taxable person in Italy. This is in accordance with Article 17, par. 4 of the Italian VAT Decree and Article 53 of Reg. UE 282/2011. The Tax Authority concluded that the Italian FE’s complex role influenced the business carried on by the Group, making it liable for VAT on the supply of goods and services in Italy. This confirms that the involvement of an Italian FE in supply must be analyzed on a case-by-case basis to identify the place of supply accurately.
Source DLA Piper
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