- The Italian Revenue Agency confirmed that the new law subjects personnel secondment services to VAT.
- The new law aligns with the European Court of Justice principles and considers personnel secondment as a service subject to VAT.
- The new law applies to personnel secondment agreements entered into or renewed after January 1, 2025.
- The Revenue Agency’s response to a query addressed a case where the seconding company only reimbursed the costs incurred for each worker, without any markup.
- The Revenue Agency’s response referenced the European Court of Justice’s ruling that personnel secondment is subject to VAT when there is a direct link between the two services.
- The ruling states that the two services are mutually conditional, meaning one is performed only if the other is also performed.
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.
