Recent clarifications provided by the Italian Revenue Agency have enlarged significantly the number of cases in which the Italian Fixed Establishment (FE) of a foreign entity is required to invoice Italian clients.

In case of supply of goods, the Italian FE may be deemed to intervene even in case the goods are directly delivered from the foreign HQ to the Italian client.
In case of provision of services, the Italian FE may be deemed to intervene even if its activities are limited to ancillary services, provided that these latter are preemptive to the main service activity performed by its HQ.

A detailed case by case analysis becomes essential to qualify the transactions and then the related VAT treatment.

In the attached document Chiara Mejnardi and Francesco Scarfone provide an overview about the above and remain available to provide assistance in this critical issue.