- Important change to VAT regime for personnel secondment and lending services introduced with DL 131/2024.
- New rules align Italian law with EU Court of Justice guidance from case C-94/19.
- From January 1, 2025, personnel secondments with cost reimbursement will be subject to VAT.
- Previous rule excluded VAT if only personnel costs were reimbursed.
- New regulation applies VAT to secondments with a direct link between service and payment.
- Rules apply to agreements made or renewed from January 1, 2025.
- VAT base includes total reimbursement amount for each seconded worker.
- Economic impact expected for entities with partial or total VAT non-deductibility.
- Public entities purchasing services for non-commercial activities will face higher costs.
- VAT applicability depends on the nature of the service provider, not the buyer.
Source: eutekne.info
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.
