A Supreme Court decision and several rulings from the Italian Revenue Agency provide further guidance on VAT in Italy:
- Italian Supreme Court, judgment No. 29180 of 12 November 2019 – This case involved a lease agreement that provided compensation to the landlord and payable at the termination of the agreement for the loss of goodwill (indennità da perdita di avviamento) as the real estate lost (part of) its business appeal because of the lease termination. The Court held that such compensation is out of scope of VAT as it has a compensatory nature and is not connected to the leasing service.
- Italian Revenue Agency, Ruling No. 466 of 4 November 2019 – This ruling states that the sale of a customer list for consideration may be subject to VAT as a sale of goods. The sale of a customer list does not per se qualify as a sale of going concern (the latter being out of scope of Italian VAT). A customer list may be considered part of a going concern only upon analysis based on the factual circumstances of the case.
- Italian Revenue Agency. Principle No. 24 of 19 November 2019 – This ruling held that entities that are liable for EU VAT may be part of an Italian VAT Liquidation Unit (Iva di gruppo), provided that:
- they meet the requirements set out under Ministerial Decree of 13 December 1979; and
- they are identified for VAT purposes in Italy, either directly or through a VAT permanent establishment or by the appointment of an Italian VAT representative.
Participation is forbidden for non-EU entities.
- Italian Revenue Agency. Ruling no. 487 of 15 November 2019 – The ruling deals with the Italian VAT group (Gruppo Iva) regime where a securitization vehicle (SPV) is part of a VAT Group and the SPV manages another asset portfolio that is separate from the SPV’s assets. It held that joint responsibility for VAT payments among members of a VAT group also covers the VAT obligations connected to the segregated asset portfolio managed by the SPV. The same interpretation had already been affirmed by the Italian tax administration with reference to asset management companies.