Italy Tax Agency Clarifies VAT Territoriality for Real Estate Consultancy Services Provided to Nonresident

The Italian Revenue Agency March 4, issued Letter No. 65/2025, clarifying the VAT treatment for real estate services, including legal consultancy and brokerage services. The taxpayer, a resident of Argentina, owned property in Italy and requested clarification on the VAT territoriality of services related to the sale of the property and cancellation of a mortgage. The Tax Agency clarified that: 1) with respect to VAT territoriality, the general rule is that the tax is due in the country in which the client or provider is located, except for real estate services, which are taxable in the place where the asset ...