Impact of New VAT Rules on Personnel Secondment for Public Entities

• Important modification to the VAT regime for personnel secondment and lending services introduced with the conversion of DL 131/2024
• New regulation aims to align Italian legislation with EU Court of Justice guidelines
• Italian legislator abolished the previous rule excluding VAT for personnel secondment with mere cost reimbursement starting January 1, 2025
• New rules make personnel secondment and lending services subject to VAT if there is a direct link between service and compensation
• New rules apply to agreements made or renewed from January 1, 2025, with previous taxpayer actions unaffected unless definitively assessed
• VAT taxable base includes total reimbursement amount for each seconded worker, including all additional costs
• New legislation impacts entities with partial or total VAT non-deductibility, such as financial or healthcare groups
• Public entities purchasing services for non-commercial activities will face increased costs under the new regime
• The nature of the entity purchasing the service does not affect the VAT applicability imposed by the service provider

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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