ITALIAN TAX AGENCY CONFIRMS THAT INDEPENDENT FINANCIAL ADVISORY FEES ARE SUBJECT TO VAT IN A RULING TO LOCONTE&PARTNERS.

Italian Tax Agency declared that independent financial advisory fees are subject to VAT, and in turn must be therefore passed on to clients in a ruling to Loconte&Partners.

The ruling is particularly relevant considering the recent entry into force of the so-called MIFID2, which obliges intermediaries to provide full evidence of the economic relationships between the client and the financial intermediary.

In this particular case, the advisory service related to investment matters is remunerated by the commissions and performance-related fees, which will be charged to clients, as a result from the execution of the recommendations provided and the updated of the portfolio model chose by the client.

Stefano Loconte, Managing Partner of the firm, declares that: “The Italian tax agency’s position on VAT has EU-wide repercussions, as this tax and its interpretation follow specific guidelines issued by the EU and the European Court of Justice. The Italian tax agency’s interpretation is therefore relevant to all those member states that have transposed said VAT directives and apply the same legal principles supporting the Italian position. As a result, all EU member states now have a legal precedent to justify their positions and to apply the same ruling on the VAT regime in the independent financial advisory sector.”

Studio Loconte&Partners advised the independent financial advisor in the preparation of the ruling to the Italian Tax Agency, with a team lead by Managing Partner, Mr. Stefano Loconte.

Founded in 1996, Loconte & Partners is an Italian tax law firm with offices in Milan, Rome, Bari, Padua and London. The firm offers an interdisciplinary approach with a strong international component and employs more than 50 tax attorneys.

Italian Tax Agency declared that independent financial advisory fees are subject to VAT, and in turn must be therefore passed on to clients in a ruling to Loconte&Partners.

The ruling is particularly relevant considering the recent entry into force of the so-called MIFID2, which obliges intermediaries to provide full evidence of the economic relationships between the client and the financial intermediary.

In this particular case, the advisory service related to investment matters is remunerated by the commissions and performance-related fees, which will be charged to clients, as a result from the execution of the recommendations provided and the updated of the portfolio model chose by the client.

Stefano Loconte, Managing Partner of the firm, declares that: “The Italian tax agency’s position on VAT has EU-wide repercussions, as this tax and its interpretation follow specific guidelines issued by the EU and the European Court of Justice. The Italian tax agency’s interpretation is therefore relevant to all those member states that have transposed said VAT directives and apply the same legal principles supporting the Italian position. As a result, all EU member states now have a legal precedent to justify their positions and to apply the same ruling on the VAT regime in the independent financial advisory sector.”

Studio Loconte&Partners advised the independent financial advisor in the preparation of the ruling to the Italian Tax Agency, with a team lead by Managing Partner, Mr. Stefano Loconte.

Founded in 1996, Loconte & Partners is an Italian tax law firm with offices in Milan, Rome, Bari, Padua and London. The firm offers an interdisciplinary approach with a strong international component and employs more than 50 tax attorneys.