- The Agenzia delle Entrate clarified that permuta (exchange) is relevant for VAT purposes when a subject exchanges goods or services with another subject.
- Permuta occurs when a subject offsets the monetary consideration owed to them by another subject against the sale of goods or provision of services.
- If the exchange occurs between two VAT-registered subjects, both transactions are subject to VAT.
- If one of the parties is a private individual, only the transaction carried out by the VAT-registered subject is subject to VAT, while the private individual may be subject to other taxes.
Source: ipsoa.it
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
Latest Posts in "Italy"
- CPB: Early Exemption from Compliance Visa for VAT Credit Offsetting up to 70,000 Euros
- 10% VAT Applies to Musical Entertainment Accessory to Restaurant Services, Rules Italian Supreme Court
- Deductibility of Non-Deductible Pro Rata VAT: Cash or Accrual Basis for Businesses?
- Expense Recharging Between Unassociated Professionals: VAT Rules and Invoicing Obligations Explained
- EU VAT Showdown: Is User Data a Taxable Payment for Free Digital Services?
