Italy Tax Agency Clarifies VAT Rate on Supplies, Installations of Windows to Remove Architectural Barriers

The Italian Revenue Agency Aug. 19 issued Letter No. 212/2025, clarifying the VAT treatment of supplying and installing windows intended to remove architectural barriers. The taxpayer, a company operating in the retail and home improvement sector, sought confirmation that the reduced 4 percent VAT rate applied to supply-with-installation contracts. Upon review, the Tax Agency clarified that: 1) the 4 percent VAT rate applies only when works are carried out under service contracts specifically aimed at eliminating barriers; 2) supply-with-installation contracts are treated as sales when the main purpose is delivering goods, and therefore don’t qualify for the reduced rate; 3) ...