Permanent Establishment (Agenzia delle Entrate Answer No. 96/2023)
The Italian Tax Agency (Agenzia delle Entrate, “AE”) considers that the sale of tourist packages in Italy by a foreign company (established in Switzerland), including the charter of pleasure vessels, carried out exclusively from offices located outside the Italian territory and/or when such activity is carried out through an independent agent (e.g. a travel agency) located in Italy, does not constitute the existence of a permanent establishment in Italy.
VAT on tourists packaging fees (Agenzia delle Entrate Answer No 96/2023)
Given that the services included in tourist packages, including the charter of pleasure vessel, are also sold for an overall consideration to Italian tourists, AE specified that these transactions are not taxable in Italy for VAT purposes since, under the relevant EU regulations, they are deemed to be carried out in the country where the selling company is established (Switzerland in this case). Consequently, the swiss company does not have the obligation to appoint an Italian fiscal representative.
Long term charter of vessels by the Swiss company (Agenzia delle Entrate Answer No 96/2023)
Long term (of a duration of more than 90 days) charters purchased by the Swiss company from Italian providers (to be resold together with the services included in the tourist packages), are not taxable for Italian VAT purposes, since they are not territorially relevant in Italy within the meaning of Article 7ter(a) of the Italian VAT Decree (DPR n. 633/72).
The deadline for submitting the yearly Italian VAT declaration expires on April 30, 2023. The obligation also regards companies that are not resident in Italy which, during 2022, issued invoices charging Italian VAT for charter fees, directly or through an Italian fiscal representative.