Non-taxable Grants: Clarification from the Revenue Agency on VAT Exemption for Contributions

• Contributions to non-repayable funds are not subject to VAT
• The Revenue Agency clarified that non-repayable contributions, which are not connected to services or goods, are not subject to tax
• The exclusion from VAT applies when the recipient is not obligated to provide anything in return

Source: ipsoa.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.