- Exports “franco valuta” are commercial transactions where an Italian company transfers goods outside the European Union without immediate ownership transfer and payment.
- Goods remain the Italian seller’s property until sold to foreign customers.
- The Italian Revenue Agency clarified that “franco valuta” exports are not considered exports under Article 8 of Decree Law 633/1972.
- For an export to be considered non-taxable for VAT purposes and contribute to the VAT ceiling, two conditions must be met: goods must be transported outside the European Union and there must be a transfer of ownership or a binding contractual commitment for sale to the foreign customer.
- “Franco valuta” exports do not qualify for VAT exemption and do not contribute to the ceiling if these conditions are not met.
- An exception occurs when a contractual commitment to sell the goods is foreseen from the beginning, as in the case of consignment stock.
- In this scenario, the goods are intended solely for transfer of ownership to the foreign customer, allowing the transaction to be classified as a non-taxable export for VAT purposes.
- Properly defining contractual clauses is crucial for optimizing VAT management and determining the ceiling.
- Including a binding commitment to sell from the beginning allows for VAT exemption and improved company tax management.
Source: ayming.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.
