DRIVING SCHOOLS NO MORE EXEMPT FROM VAT

The Italian Agenzia delle Entrate —an institution roughly comparable to the British HMRC and the American IRS— has recently acknowledged the implications of the new EU approach to VAT applicability, according to which driving schools fall within the purview of value-added taxation.

Driving lessons and classroom instruction provided by such schools are thus to be regarded as subject to VAT. Despite previous statements to the contrary, including those issued by the Agenzia delle Entrate itself, their business cannot benefit from VAT exemption any more.

As the application of this change is going to be retroactive, all parties concerned will have to file corrective supplementary tax statements. This will in turn lead to changes in the amount of deductible VAT for the single year affected by the ruling and a consequent reassessment of the pro rata percentage.

UNASCA, the Italian driving school trade association, submitted a document to the Finance committees of both Parliament houses with a view to oppose the decision taken by the agency on September 2, 2019 with resolution no. 79/E.