ESTABLISHMENT AND MANAGEMENT OF OFFICIAL PARTICIPANTS' PAVILIONS THROUGH GENERAL CONTRACTOR
Official and Non-Official Participants may commit the establishment and management of their pavilion to a General Contractor (hereinafter GC), an Entity entrusted with the signing of contracts necessary for the establishment and management of their Pavilion.
A General Contractor may also fulfil the task of General Section Commissioner, if empowered by an Official Participant.
Except for this latter case, the GC acts with mandate of representation.
For indirect taxes purposes, if the GC is a foreign company with mandate of representation, and charged with the establishment and management of the Pavilion by an Official or Non-Official Participant, this does not necessarily represent a permanent establishment of the Participant. In this case, direct tax exemption on goods, estate and income related to these actions is provided, unless the Participant performs a commercial activity, which is normally taxed.
In particular, services provided to a GC are:
- relevant in Italy, if the subject is a VAT taxpayer with residence in Italy;
- not relevant in Italy, if the subject is a VAT taxpayer with residence outside Italy.
Instead, if the GC does not perform a commercial activity in their country and, hence, is not a VAT taxpayer, the services provided to the GC shall be subject to VAT in Italy.
- If the GC acts with mandate of representation by the Official Participant: he or she is not subject to VAT. In this case, the supplier issues the invoice in the name of the Official Participant and the same commission of the GC if relevant in Italy is not subject to VAT.
- If the GC acts without mandate of representation by an Official Participant, which is a tender contract: the services performed or received by the GC are subject to VAT if relevant in Italy. In this case, the supplier issues the invoice increased by the relevant tax rate on behalf of the GC, that in turn issues another invoice on behalf of the Participant, in case increased by their commission and not subject to VAT.