Allocation of Supplies between Establishments under EU VAT

In 2021, the Italian tax authorities issued two ruling replies providing guidance on how to allocate a supply to an establishment for VAT purposes in the context of a global contract under which several supplies are provided to a multilocation entity (MLE). In this article, the authors discuss the official guidance provided by the Italian tax authorities in light of the rules for allocating supplies to establishments located in different jurisdictions as enshrined in the EU legislature.