- The Italian Revenue Agency examined the VAT rate applicable to pet litter, providing general guidelines that could also affect other goods categories
- The document clarifies that the VAT rate should be determined based on the functional purpose of the product, regardless of the materials it is made from, such as plant-based products or wood
- Since pet litters are not mentioned in any tables attached to the decree that stipulate reduced VAT rates, they must be sold with the standard VAT rate
- The principle established by the Revenue Agency is that VAT rates for goods should be classified not only based on their objective characteristics and properties but also considering their function and intended use
- This principle is primarily found in EU jurisprudence
- For example, a European Court of Justice ruling on October 1, 2020, stated that any product intended for human consumption that provides necessary nutrients should be considered a food product
- This interpretation is supported by the directive’s goal to make essential goods more accessible to the end consumer by applying a reduced VAT rate
- Regarding the customs classification of products, a European Court of Justice ruling on April 28, 2016, highlighted that the intended use of a product can be an objective classification criterion if it is inherent to the product
Source: eutekne.info
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
