Italy Tax Agency Clarifies VAT Treatment of Chain Transactions, Triangular Arrangements

The Italian Revenue Agency May 29 issued Letter No. 111/2026, clarifying the VAT treatment of chain transactions and triangular arrangements. The taxpayer, a German VAT-registered company, sought clarification on whether purchasing from a Polish supplier and reselling to an Italian buyer, with direct transport to Italy, qualified as a triangular transaction and allowed for reverse charge application. Upon review, the Tax Agency clarified that: 1) the triangular simplification regime doesn’t apply when an intermediary uses a VAT identification number different from that of the member country of dispatch, resulting in the transport being attributed to the intermediary’s acquisition; 2) the ...