The Third Sector refers to a part of society that is distinct from both the public sector (government) and the private sector (businesses). It encompasses various non-profit organizations, voluntary groups, and civil society organizations that operate to promote social, environmental, or cultural objectives rather than pursuing profit or serving governmental functions.The Third Sector includes a wide range of organizations, such as charities, foundations, NGOs (Non-Governmental Organizations), community groups, religious institutions, and more. These entities often work to address social issues, provide services to underserved populations, advocate for causes, and engage in various philanthropic activities. They play a crucial role in contributing to the well-being of communities and addressing societal challenges.
The fiscal reform includes a revision of VAT rules for the Third Sector, aiming to streamline compliance. This change is driven by modifications in non-commercial entities’ regulations due to the Third Sector Code (Legislative Decree 117/2017). Additionally, the intervention considers the effects of Legislative Decree 146/2021, which, starting in July 2024, subjects many activities of associative entities (e.g., amateur sports, cultural, and social promotion associations) to VAT. The reform is expected to bring better coordination between these changes and VAT rules for non-commercial entities, clarifying the scope of applicable exemptions. It also addresses the VAT treatment of operations by associative entities, modifying certain articles of the VAT code.
Source: eutekne.info
