Transfers of goods between the client and the commission agent are taxable for VAT

Facts of the case

Through a tax assessment notice, the Revenue Agency challenged a company (identified as the principal) for VAT evasion in relation to sales of goods that the company had delivered to an individual, for subsequent resale on an online platform.

The assessment was based on the provisions of art. 2, par. 2, no. 3, of the VAT Decree DPR 633/72, which defines as taxable transfers of goods “the transfers from the principal to the commission agent or from the commission agent to the principal of goods sold or purchased in execution of commission contracts”.

In fact, the issue involved an individual who visited the principal company's stores to select merchandise, photograph it, and create sales listings on an online sales platform. The individual also managed subsequent shipments to customers and received the sale proceeds, which were later transferred to the principal.

The principal set the sale price, and after the sale was completed, delivered the goods to the commission agent, from whom it received the sale proceeds, consisting of the sale price minus the costs due to the online platform, shipping expenses, and the 15% commission owed to the commission agent.

According to the Revenue Agency, this commission relationship was also demonstrated by statements ...