Italy Tax Agency Clarifies VAT Treatment of Services Provided by Nonresident Company, Intermediaries

The Italian Revenue Agency Dec. 13 issued Letter No. 256/2024, clarifying the VAT treatment of services provided by a nonresident company and its intermediaries. The taxpayer, a Reserved Italian Alternative Investment Fund that invests in third party litigation funding (TPLF), contracted with a foreign company, BETA, to provide certain services relevant to the legal matters, which included identifying injured parties, collecting damage information, and managing the distribution of funds among injured parties. BETA, in turn, hired other foreign intermediaries to assist with these activities. The taxpayer sought clarifications on the VAT treatment of services provided by BETA and the intermediaries. ...