- No obstacles to coexistence of options when perimeters remain distinct
- Italian Revenue Agency clarified that an economic group can form two distinct VAT Groups in Italy
- Case involves an international group with a foreign parent company BETA1
- BETA1 controls Italian company BETA, which controls various Italian companies
- BETA1 also controls ALFA through Austrian Gamma, with ALFA having a secondary branch in Italy and controlling Italian company DELTA
- Since 2021, a VAT Group was formed between subholding BETA and its Italian subsidiaries
- ALFA intends to form a VAT Group with its Italian branch and DELTA
- Doubt arises about coexistence of ALFA’s and BETA’s VAT Groups
- Revenue Agency assesses conditions for exercising the option
- All VAT Group participants must be established in the State territory
- VAT Group can be formed among national entities even if financial link is from a foreign entity
- No foreign companies can intervene in the chain linking resident subsidiaries to non-resident parent
- Control must be verified with the first foreign holding company
- ALFA satisfies financial link requirement, controlling DELTA directly
- ALFA is the financial link source but not part of the single taxable entity
- Financial link for ALFA Italy must be verified with the foreign parent
- ALFA Italy and DELTA can form a VAT Group separately
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.
