- Italian tax authorities provided clarifications on VAT zero-rated exports in a ruling dated 14 February 2025.
- The case involved an Italian wine company exporting wines to the US through a logistics firm.
- Goods will be shipped to the US and stored in a warehouse without transferring title.
- Sales to US customers will occur after the goods are in the US.
- The Italian company believes this qualifies as a VAT zero-rated export under article 8 of the Italian VAT Code.
- ITA stated that for VAT zero-rating, ownership transfer must occur with the shipment outside the EU.
- If ownership transfer does not occur, it is considered an export for customs, and subsequent sales are outside Italian VAT scope.
- ITA clarified that shipments to a non-EU country for supply to a known customer under an agreement are treated as VAT zero-rated exports when removed from the warehouse.
Source: taxathand.com
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.
