Italian Revenue Agency Clarifies VAT Treatment of Data Center Colocation Services

The Italian Revenue Agency (IRA) has published Ruling No. 175 of 17 September 2026, which clarifies the VAT treatment of data center colocation services. Specifically, the ruling addresses a query from a foreign cloud computing company operating through an Italian branch. The company asked how to correctly classify the purchase of a so-called "private cage" within a third-party Italian data center. This private cage is an exclusive, secure, and locked area enclosed by mesh walls on all four …