Italy: Tax agency clarifies exclusion of theoretical VAT from payment calculations
The Italian Revenue Agency released Letter No. 123/2025, providing clarification on how theoretical VAT should be treated in relation to recorded payment calculations for non-taxable transactions.
The inquiry was submitted by a company operating in the shipping and logistics sector, particularly serving trade fairs and events. The company asked whether theoretical VAT related to non-taxable operations could be included when determining the value of payments recorded in its tax account.
In response, the Agency clarified the following:
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Transactions such as the transport of goods linked to export or import activities, and services connected to customs procedures, are considered objectively non-taxable for VAT purposes. Therefore, even if a payment is made by another party, it cannot be included in calculating the relevant 10 percent threshold.
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Theoretical VAT linked to non-taxable operations may not be factored into the recorded payment values in the taxpayer’s tax account.
This clarification confirms that only actual VAT on taxable operations can be included in such calculations under current regulations.
Source: agenziaentrate.gov.it
