Italy Tax Agency Clarifies VAT Rules for Nonresident Habitual Exporters

The Italian Revenue Agency March 4 posted online Letter No. 148, clarifying the VAT rules for nonresident habitual exporters. A company headquartered in in an EU country and VAT-registered in Italy supplies wholesale medical and orthopedic products into Italy. The company doesn’t charge VAT for its active transactions in Italy. The company wished to confirm its right to use the VAT regime for habitual exporters, which allows for VAT-free transactions up to a limit. The agency clarified that as a habitual exporter based in an EU country and VAT-registered in Italy, the company may make VAT-free purchases within the regime ...