Italy Tax Agency Clarifies VAT Treatment on Sale of Vascular Access Instruments

The Italian Revenue Agency July 26 issued Letter No. 389/2022, clarifying the VAT treatment for the sale of vascular access instruments. The taxpayer is a company that supplies medical devices to national distributors. The taxpayer requested clarification as to the application of a reduced 5 percent VAT rate for the supply of vascular access instruments. The tax agency denied the application of the reduced VAT rate, clarifying that: 1) the reduced VAT rate is provided for the goods specifically indicated in the list of subsidized products for which the classification codes are also assigned; and 2) the vascular access instruments ...