- The Agenzia delle Entrate received requests for clarification on the VAT rate applicable to plant-based animal litters
- Article 98 of Directive 2006/112/EC allows member states to apply reduced VAT rates to specific categories listed in Annex III
- Italy’s implementation of this directive is found in Article 16 of the Presidential Decree of October 26, 1972, which sets standard VAT at 22% and reduced rates at 4%, 5%, and 10% for listed goods and services
- Circular No. 32/E of June 14, 2010, clarified that the identification of goods eligible for reduced VAT rates refers to the customs tariff entries in force until December 31, 1987, now superseded by the Combined Nomenclature
- Correct VAT application requires a technical assessment to accurately determine the product’s composition and customs classification
- Plant-based litter producers have requested technical assessments from the Customs and Monopoly Agency (ADM) due to the absence of a specific entry in Table A of the VAT Decree
- ADM’s technical assessments have resulted in varying customs classifications for these products, focusing on their composition and material characteristics
- Based on ADM’s findings, different VAT rates have been applied to these products
Source: agenziaentrate.gov.it
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.
