The Italian Revenue Agency Jan. 4 posted online Letter No. 1, clarifying the VAT taxation of goods re-imported over the post-Brexit transitional period. The taxpayer, an online company based in the U.K., sells clothing apparel into Italy, where it is VAT registered. As a habitual exporter, the U.K. company wished to confirm its right to re-import goods returned by customers without paying VAT, under the VAT ceiling regime. The agency clarified that as a habitual exporter, the company may make VAT-free purchases within the limits of the ceiling regime accrued over the past 12 months. [Italy, Revenue Agency, 01/04/21]
Reference:...