Italy published Law No. 166 of 14 November 2024 in the Official Gazette which stipulates that the loan or secondment of staff is not considered a taxable supply for VAT purposes if the recipient solely reimburses the salary and associated costs.

From 1 January 2025, staff loans or secondments will be subject to VAT, even if they are just cost reimbursements. Existing arrangements before 1 January 2025 will remain unaffected unless there’s a final tax assessment.

Law No. 166 of 14 November 2024 repeals Article 8(35) of Law No. 67/1988.