- The Italian Revenue Agency issued Ruling n. 38/2025, commenting on the Decree-Law No. 131 of 16 September 2024.
- The Decree Law amended the VAT regime regarding personnel secondment, aligning it with European Court of Justice provisions.
- The New Provision repealed the Old Provision, which excluded personnel secondments with pure cost recharges from VAT.
- Now, all secondment arrangements fall under VAT, regardless of consideration.
- The Ruling examined a case where the seconding company received only reimbursement of pure costs.
- The seconding company sought clarification on the VAT treatment.
- The Old Provision excluded secondments with only cost recharges from VAT, assuming the service was free-of-charge.
- The Court of Justice of the European Union found the Italian VAT regime incompatible with Directive 2006/112/EC.
- The Court ruled that personnel secondment is a taxable service if there is a transaction with a price or consideration, even if it’s just cost reimbursement.
- The Court also stated that there must be a direct link between the service and the consideration.
Source: jdsupra.com
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.
