Alfa, a company acting as a contractor through a Temporary Business Association (ATI) with another company, has signed a contract with the interregional agency for the river, Beta, to carry out construction work on a river in several municipalities, which is partly financed by the region. The contract specifies that the total amount of the work is a certain sum and that a part of the work, financed by the region, involves excavating a specific amount of material. The region has updated the estimated value of the excavated material in light of the COVID-19 crisis, and will compensate Alfa for the work using this material. However, the region has raised concerns about the VAT treatment of the compensation for the material. Alfa is seeking clarification on the correct VAT treatment for the compensation.
Source: agenziaentrate.gov.it
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