Changes in VAT for Non-Profit Associations: Analysis of the Novelties and Implications

• The CNDCEC and FNC have published a research document on VAT changes for non-commercial associative entities.
• The document examines the changes to VAT starting in 2024 for these entities.
• The document highlights that current provisions are not in line with the EU directive on certain social or sports activities.
• The national legislature has enacted the DL 146/2021 to align Italian law with the EU directive and address infringement proceedings.
• The DL 146/2021 abolishes certain provisions of the DPR 633/72 from July 1, 2024, and introduces exemptions for non-profit associative entities.
• The document notes that the scope of the new exemptions is not exactly the same as the current exclusion regime, leading to changes in taxable and exempt operations.
• A comparison table is provided to illustrate the differences between the current and future regulations.
• The changes will require significant and complex adjustments for thousands of associations.
• Some entities will become subject to VAT for previously exempt operations, resulting in additional compliance obligations.
• Entities can opt for dispensation from certain obligations or separate their activities if they also engage in taxable operations.

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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