Italy Tax Agency Clarifies VAT Treatment of Rental Payments Under Mediation Agreements

The Italian Revenue Agency Dec. 18 issued Letter No. 316/2025, clarifying the VAT treatment of rental payments mediation agreement. The taxpayer, a Slovenian company, entered into a warehouse lease that didn’t specify VAT treatment. The lessor was subsequently declared bankrupt. The taxpayer inquired whether its payment under the mediation agreement with the lessor for rent and past expenses was subject to VAT. The Tax Agency clarified that: 1) the mediation agreement was a new agreement with new rent conditions and had the legal effect of a settlement agreement; 2) payments under it were for a supply of services because there ...