Italy Tax Agency Clarifies VAT Treatment of Transactions Involving Sports Properties

The Italian Revenue Agency April 3 issued Answer No. 87/2025, clarifying the VAT treatment of transactions involving sports properties. The taxpayer, a non-EU company, rented a racetrack from an Italian company for sporting events. The rental included services such as hospitality, catering, and organizational support. The racetrack owner applied the standard VAT rate. The taxpayer inquired whether the service it received should be classified as the mere rental of real property, or a complex service linked to sporting practice that could be exempt under Article 132 of EU Directive 2006/112/EC on the common system of VAT. The Tax Agency clarified ...