Italian VAT Law Update: Secondment of Staff Now Taxable Supplies under Law Decree No. 131/2024

• Law Decree No. 131/2024 changes the VAT treatment of staff secondment in Italy
• Secondments of personnel will now be taxable supplies for VAT purposes
• The new rules align with a 2020 decision of the Court of Justice of the European Union
• Existing Italian rules exempted secondment arrangements from VAT
• Treating staff secondments as outside the scope of VAT could undermine VAT neutrality
• The CJEU decision in the San Domenico Vetraria S.p.A. case prompted the changes
• The recent law decree repeals the relevant section of Law 67/1988
• Law Decree No. 131/2024 resolves the controversy surrounding VAT treatment of staff secondments

Source: bdo.global

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.