VAT exemption for educational services by non-residents

vat exemption

The Italian Revenue Agency clarifies VAT exemption conditions for non-residents who provide educational services.

With the answer to tax ruling n. 750 published on October 27, 2021, the Italian Revenue Agency clarified that VAT exemption can be applied to the provision of certifications and training services when there is “recognition” by the competent Italian authorities to the non-resident who provides educational services.

Clarifications of the IRA

Whenever a UK-based Educational Charity or International Certifier recognized by the MIUR offers English-language skills certification services, music and performing arts at Italian public schools, exemptions from the application of VAT may be applied. As clarified by the Italian Revenue Agency with the answer n. 750, the institute will have the possibility to invoice these services from its English identification number, specifying that they are certification services or training courses for which the requirements for exemption are met (article 10, paragraph 1, n. 20 of the VAT Decree) and that they are subject to mandatory reverse charge (article 17, paragraph 2 of the same VAT Decree).

Applicability of VAT exemption for non-residents

However, in order to recognize the VAT exemption, a case-by-case analysis should be carried out in order to verify that both subjective and objective requirements for the exemption are met, applying the same criteria as would be applied to a taxable person established in Italy.

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