- Litigation finance, or third-party litigation funding (TPLF), involves a third party financing a party’s legal costs in return for a share of any proceeds
- TPLF agreements are considered ‘atypical’ contracts in Italy’s legal system
- The tax ramifications of TPLF agreements, specifically concerning VAT, are complex and require a case-by-case analysis
- The European Parliament Research Service highlighted uncertainty regarding the application of VAT rules to dispute financing services
- The question of the VAT regime applicable to dispute financing services within TPLF agreements has been addressed to the Italian tax authorities for the first time.
Source: internationaltaxreview.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.
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?
