Italy Tax Agency Clarifies Reduced VAT Rate on Vehicles Adapted for Disabled Individuals

The Italian Revenue Agency Feb. 11 issued Letter No. 35/2026, clarifying eligibility for the 4 percent reduced VAT rate on vehicles adapted to accomodate disabled individuals. The taxpayer, an individual with motor disabilities, held a BS-category special driving license with adaptation codes, but not a disability certificate under Law No. 104/1992. The taxpayer sought clarification regarding whether the reduced VAT rate applied to the purchase of their retrofitted vehicle. Upon review, the Tax Agency confirmed that individuals authorized to drive with reduced or permanently impeded motor skills can apply the reduced rate if they provide a driver’s license indicating the ...