- The Italian fixed establishment actively negotiates sales contracts and manages client relations, marketing, and pricing independently.
- It must apply the reverse charge mechanism for VAT on intra-EU purchases.
- It is required to charge and report VAT on sales to Italian customers.
- For purchases, its role is limited to identifying suppliers and economic evaluation, while contract negotiation is handled by the head office.
Source: kpmg.com
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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