Italy Tax Agency Clarifies VAT Exemption on Vehicle Tax Payment Service

The Italian Revenue Agency April 7 issued Letter No. 182/2022, clarifying the VAT exemption on vehicle tax reimbursements due to the payment service provider with the introduction of a new method called PagoPA. The taxpayer was a company which managed a fleet of cars, for which it collected vehicle tax and fee payments using the newly introduced PagoPA payment method. The taxpayer inquired as to the VAT treatment of the tax collections it makes in its car fleet management business. The tax agency clarified that: 1) if the relationship between the business and its clients is considered a mandatory representation, ...