- New VAT rules for personnel secondment bring significant changes for businesses and non-commercial entities
- VAT applies to contracts signed or renewed from January 1, 2025
- Previous VAT exclusion rule was abolished due to incompatibility with EU directives
- Recent circular from the tax agency provides clarifications on the new rules
- Subjective scope: Secondment requires business activity; non-commercial entities must verify business organization if secondment involves personnel from institutional activities
- Objective scope: Secondment for consideration is a service; payment must be essential for the operation
- Territoriality: B2B operations are relevant in Italy if the recipient is established in Italy; B2C operations are relevant if the provider is in Italy and the recipient is in the EU; outside EU, the service is not subject to VAT
- Different rules apply for labor supply under a different law
Source: commercialistatelematico.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.
