Italy Clarifies VAT Treatment of Personnel Secondments

• Italian Revenue Agency issued Answer No. 38 2025 on February 18, 2025.
• The answer clarifies VAT treatment of personnel secondments and loans between companies.
• Taxpayer A, an in-house company, provides IT services for its members.
• Taxpayer B, an instrumental body, manages health and social health activities.
• Taxpayer B requested temporary personnel from Taxpayer A.
• Taxpayer B argued that reimbursement of costs for seconded personnel should not be subject to VAT.
• The Tax Agency clarified that reimbursements made after January 1, 2025 are subject to VAT.
• The decision is based on a European Court of Justice ruling.

Source: news.bloombergtax.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.

---

---