Italy introduced a Decree-Law No. 215: Goods and Services supplied to combat COVID-19 exempt from VAT

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In response to the COVID-19 pandemic, the government of Italy introduced Decree-Law No. 215 containing VAT amendments that exempt supplying goods and services used to combat COVID-19 from VAT. The VAT amendments imposed in Decree-Law No. 215 are as following:


1.Goods and services supplied to government bodies under EU Law will be exempt from VAT given that these supplies are used to combat the COVID-19 and are not used for future considerations. If the conditions are not met, the agencies involved must inform tax authorities. The supplied assets would be subject to VAT using the rate applicable at the time of supply.


2.VAT exemptions of the following supplies of goods and/or services given that these supplies don’t distort competition of enterprises:


  • Supply of goods and services carried out for institutional purposes by trade, welfare, religious, cultural, and other associations. 
  • Supply of services related to sports by sports associations to people practicing sports and which by law are part of the one local or national organizations. 
  • Supply of foodstuff to the needy by nonprofit associations. 


Decree-Law No. 215 was published by the Italian Official Gazette and is enforced on 21 December 2021, the day following its publication. 



Sources: gazzettaufficiale.it (Law No. 215, Official Gazette No. 301/2021)

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