Italy Tax Agency Clarifies Criteria for Semi-Finished Products Under VAT Reverse Charge Regime

The Italian Revenue Agency Sept. 22 issued Letter No. 13/2025, clarifying the eligibility requirements for semi-finished products under the VAT reverse charge regime. The taxpayer, an association, sought clarification regarding whether specific gold materials, such as earring clips, clasps, and chain links, constituted semi-finished products under the VAT reverse charge regime. Upon review, the Tax Agency found that: 1) under Resolution No. 161/E/2005, raw materials like the ones at issue don’t fall within the scope of semi-finished products because they are considered finished products not requiring further assembly or production; and 2) the taxpayer’s materials therefore don’t qualify for the ...