- Starting in 2025, personnel secondment will be subject to VAT even without a mark-up.
- This follows a new Italian law aligning with EU Court of Justice rulings.
- The law states that personnel secondment constitutes a service subject to VAT if there is a direct link between the service provided and the payment received.
- The new law applies to personnel secondment contracts signed or renewed after January 1, 2025.
- The Italian Revenue Agency confirmed this in a recent response to a query.
- The Agency stated that even if the seconding company only reimburses the costs incurred for the seconded worker, the service is still subject to VAT.
- This is because the service provided by the seconding company is directly linked to the payment received from the seconded company.
- The Agency’s response is based on a 2020 EU Court of Justice ruling that found that personnel secondment is subject to VAT even if the seconding company only reimburses its costs.
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.
