- The Italian tax authority addressed an inquiry from a foundry, ALFA, regarding the applicable VAT rate for artistic services, concluding that such services are subject to the standard VAT rate of 22%, not the reduced rate.
- ALFA’s services involve creating commissioned artworks based on models provided by clients, including artists and art dealers, which the tax authority classified as a service rather than a sale of art objects.
- While subsequent sales of the finished artworks by the clients may qualify for a reduced VAT rate of 5%, ALFA’s operations are categorized as service provisions, thus adhering to the higher VAT rate.
S0urce Agenzia Entrate
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