Italy Tax Agency Clarifies Applicable VAT Rate for Specific Medical Device

The Italian Revenue Agency March 3 issued Letter No. 61/2026, clarifying the applicable VAT rate for a specific medical device. The taxpayer, a company engaged in the development and distribution of medical devices, marketed a spreadable compound that had a primary dressing function, which was used for the treatment of acute and chronic wounds. The taxpayer sought clarification on whether sales of the product could benefit from the reduced 10 percent VAT rate applicable to medicines, rather than the ordinary 22 percent rate. Upon review, the Tax Agency clarified that: 1) the product qualified as a medical device intended for ...