- The Italian tax authority clarified that ESCo energy-efficiency services to public housing entities are subject to VAT because the relationship is contractual and the incentive payments and entity-paid costs are considered compensation.
- Multi-year management fees paid by the entities to ESCo for operating the installed systems are also within VAT scope, including under EPC and other public-private partnership contracts.
- Split payment does not apply to the incentive-funded portion, because the entities do not actually pay the ESCo; the contribution is paid directly by GSE under the special scheme, so VAT is charged normally by the ESCo.
- The 10% VAT rate for thermal energy supply applies only if the energy is used for domestic purposes.
- The ruling also confirms that public housing entities are generally subject to split payment, but only where they actually make the payment to the supplier.
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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