Italy Tax Agency Clarifies Reduced VAT Regime for Disinfectant Detergent Products Products Due to Coronavirus

The Italian Revenue Agency Nov. 5 posted online Letter No. 530, clarifying the application of the reduced VAT regime on disinfectant detergent and other anti-viral products, due to the coronavirus pandemic. A company that manufactures and markets cosmetic and hygiene products such as hand soap and hand sanitizer inquired as to whether its products are eligible for the reduced VAT regime, which exempts VAT through Dec. 31, 2020, and provides a reduced 5 percent rate beginning Jan. 1, 2020. The agency clarified that: 1) only medical disinfectants and devices used specifically to combat the coronavirus are eligible for the regime; ...