- Third-Party Litigation Funding activities in Italy may be VAT exempt under certain conditions
- TPLF involves financing disputes by third parties in exchange for a share of the disputed amount
- Italian Tax Authority clarified conditions for VAT exemption for TPLF services
- Case-by-case analysis is necessary to determine VAT treatment for services provided by litigation funders
- Supervision by the Bank of Italy and financial purpose of agreement are key factors for VAT exemption
- Ruling No. 83 of 28 March 2024 by Italian Tax Authority provides guidance on VAT treatment for TPLF services
Source: dlapiper.com
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.
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