VAT Rules for Third Sector Entities: General Principles and Key Distinctions from Income Taxation

• The non-commercial principle for Third Sector Entities (ETS) introduced by art. 79 of DLgs. 117/2017 applies only to income taxes, not to VAT.
• For VAT purposes, ETS must follow the general rules of DPR 633/72 and the EU directive 2006/112/CE, assessing subjective, objective, and territorial requirements.
• Activities considered non-commercial for income tax may still be commercial for VAT, such as organizing tourist activities.
• There may be discrepancies between income tax and VAT treatment, requiring careful evaluation.
• The circular also clarifies the application of the flat-rate VAT regime for volunteer organizations and social promotion associations as per art. 86 of DLgs. 117/2017.

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.

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