Italy: VAT group update for non-resident companies.
The Italian tax authority has confirmed that a non-resident company can be identified in Italy for VAT purposes with the sole scope to participate at the VAT consolidation regime “IVA di gruppo” (art. 73 of Presidential Decree 633/1972) – i.e. even without carrying out any relevant transaction for VAT purposes.
This means that for a foreign holding company the identification in Italy according to article 35-ter of Presidential Decree 633/1972 is enough to set-up the VAT consolidation.