- The VAT treatment for the detachment and lending of personnel has changed, making even simple cost reimbursements taxable.
- The new VAT rules apply from January 1, 2025, following the repeal of a specific law article.
- The changes align Italian law with a 2020 EU Court of Justice ruling.
- The ruling states that personnel detachment, even with just cost reimbursement, is a taxable service if there is a direct link between the service and the payment.
- Subjective requirement: The employer must primarily conduct business or self-employment activities.
- Non-commercial entities must perform the detachment within their business activities to be taxable.
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.
