Italy: Tax authority issues ruling, recognizing UK VAT groups after Brexit

VAT treatment of services between an Italian branch and a UK head office belonging to a UK VAT group

Tax authority issues ruling, recognizing UK VAT groups after Brexit

The Italian tax authority in November 2021 issued a ruling (No. 756/2021) addressing the value added tax (VAT) treatment of services between an Italian branch and a UK head office belonging to a UK VAT group.

In the ruling, the tax authority confirmed that UK VAT groups are still recognized after Brexit. Therefore, a UK VAT group is seen as a separate taxable person for VAT purposes, and services between a fixed establishment located in Italy and the UK head office belonging to a UK VAT group are relevant for VAT purposes (although based on the general business-to-business (B2B) place-of-supply rules, outside the scope of Italian VAT.

Read a November 2021 report [PDF 240 KB] prepared by the KPMG member firm in Italy

 

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