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Italy: New VAT treatment for supply of staff

The new VAT treatment will apply to loans or secondments of staff agreed or renewed from January 1, 2025.

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November 12, 2024

The Italian Parliament on November 6, 2024, approved an amendment to Decree Law no. 131/2024 that repeals the rule that the provision of staff is not a supply for value added tax (VAT) purposes if the recipient only reimburses the salary and associated costs.

The new VAT treatment will apply to loans or secondments of staff agreed or renewed from January 1, 2025, without affecting the positions of taxpayers before that date, unless they have undergone a final tax assessment.

The final text of the Decree Law has not been published in the official Journal but is expected soon.

Read a November 2024 report prepared by the KPMG member firm in Italy

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