- Italian Revenue Agency issued Letter No. 65 2025 on March 4, 2025
- Letter clarifies VAT treatment for real estate services, including legal consultancy and brokerage services
- Taxpayer, an Argentine resident, owned property in Italy and sought clarification on VAT territoriality for services related to property sale and mortgage cancellation
- Tax Agency clarified that VAT is generally due in the country of the client or provider, but for real estate services, it is taxable in the location of the asset
- VAT was applicable regardless of the taxpayer’s residence status, as services were directly connected to the property in Italy
- Although VAT was applicable, the legislature granted a derogation for certain services, including those related to real estate in Italy
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.
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