Italy Tax Agency Clarifies VAT Treatment of Design, Construction of Research Centers

The Italian Revenue Agency Dec. 11 issued Letter No. 309/2025, clarifying the VAT treatment of the design and construction of research centers. The taxpayer, a research body, inquired as to whether it would qualify for the reduced 10 percent VAT rate on the design and construction of a research center that would include buildings intended for research, and to an equal or greater extent, training. The Tax Agency clarified that: 1) the VAT benefits for buildings assimilated to non-luxury dwellings extend to buildings used for pursuing collective interests, such as education; 2) the taxpayer’s training activity couldn’t be marginal compared ...