The next EXPO Milan 2015 will take place from May 2015 until October 2015. Memo n. 26 issued by Agenzia delle Entrate on August, 7th goes deeper into VAT issues referred to …
The next EXPO Milan 2015 will take place from May 2015 until October 2015.
Memo n. 26 issued by Agenzia delle Entrate on August, 7th goes deeper into VAT issues referred to EXPO Milano 2015, which will take place in Milan from May 2015 until October 2015.
Memo first points out that services rendered to the participants just follow general regulations (Art. 44 and Art. 45 Dir. 112/06); so, as regards participants who are non-taxable persons, place of supply is Italy, while for business participants place of supply is the one where they have established their business.
The fact is that range of services falling within “fair/exhibition services” definition provided by memo 26/14 is quite wide. It includes:
- Renting of the soil where pavilions/stands will be set up;
- Pavilions provision services (including ancillary services). Please note that if such services are let out on contract to a non-established company which, in its turn, gives them out by contract to an Italian company, services rendered by Italian company itself still follow B2B general regulations (so, place of supply is not Italy);
- Management and general services (water, electricity etc.).
As per Agreement between Italy and BIE (Bureau International des Expositions) goods and services, bought by so called Official Participants, qualified as non-taxable persons, will be also treated as VAT exempted.
Above-mentioned Agreement is a special act derogating from domestic VAT decree; it makes distinction between Official Participant and Non-Official Participants. The former ones are formed by States or inter-state organizations, while the latter ones are business companies, private organizations and public bodies other than States. This being stated, supplies of goods/services to Official Participants who are non-taxable persons will be VAT exempted (suppliers, however, will keep VAT deduction right).
Official Participants will benefit from other tax reliefs, since they will not have to pay several relevant indirect taxes (i.e. imposta di registro, imposte ipocatastali, etc.).
Alessandro Garzon
T.B.S. Tax Back Service Srl
