- The Italian Revenue Agency issued a letter on May 19, 2025
- The letter clarifies VAT treatment of co-employment costs under a business network contract
- A company formed under this contract hired staff and allocated costs to associated companies
- The company argued that VAT was not applicable to reimbursement of these costs
- The Agency clarified that reimbursement charges each company based on worker contribution
- It was determined that this reimbursement is a transfer of money not subject to VAT
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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