Stefano Loconte, managing partner of Italian tax law firm Loconte and Partners, said the Italian Agency of Revenue (IAR) ruling means VAT fees will in turn be passed on to the clients of financial advisers.
He said the IAR’s decision has wide repercussions as it sets a legal precedent across all EU nations.
“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,” Loconte said.
Mifid II
Loconte said the decision is “historic”, especially in relation to Mifid II as advisers will have to disclose the VAT fees to their clients.
The decision, he said, sets a clear distinction between independent financial advisers and restricted ones.
“With this ruling, the Italian tax agency recognises the legal and economic independence of an advisor,” he said.
