Italy Tax Agency Clarifies VAT Treatment of Insurer’s Proposed Driving App

The Italian Tax Revenue Agency Dec. 29 posted online Letter No. 629, clarifying the VAT treatment of a driving app proposed by an insurer. The insurer was considering developing a smartphone app that would use a dash cam and provide information on speed, driving style, and other areas. The insurer intended the app and dashcam to aid in insurance claims, though the offering wouldn’t qualify as “black box” under the private insurance code. The insurer asked whether the proposed services would be considered autonomous operations subject to VAT, or insurance-related ancillary services subject to the same rate as the insurance ...