Italy Tax Agency Clarifies VAT Rules for Goods, Services Used in Specified Construction Projects

The Italian Revenue Agency Dec. 17, 2024, issued Answer No. 261/2024, clarifying the rules on the reduced VAT rate for goods and services used in specified construction projects. The taxpayer, a private organization, managed a mining site with cultural and historical significance. The taxpayer hired a construction company to renovate the site for use as a tourist attraction, and sought clarification on whether the reduced 10 percent VAT rate applied to activities carried out within the scope of the project. Upon review, the Tax Agency found that: 1) the reduced VAT rate applies to goods and services used in construction ...