Meet the Law | New VAT measures

Law n. 13/2020 published today foresees the following VAT measures, applicable with temporary effects:

A.    VAT reduced rate

The application of the reduced VAT rate on imports, supplies and intra-EU acquisitions of protection masks and sanitizer gel that take place from tomorrow through 31.12.2020.

B.    VAT exemption

A VAT exemption, with credit, applicable to the supplies and intra-EU acquisitions of listed goods in need for the COVID-19 treatment (ventilators, masks, other medical equipment, gloves, medical outfits, hand sanitizers, alcoholic solutions, certain drugs used on the COVID treatment, materials for field hospitals, etc.) which are:

• Acquired by the State and /or other entities directly involved with the  COVID-19, namely public hospitals, and certain private hospitals and non-profit organisms (identified by the Government); and
• Intended for the treatment or prevention of the COVID-19 (but where the property of such goods remains with the hospitals or similar entities) or for free distribution by these entities to COVID-19 patients or COVID-19 workers (notably, healthcare workers); and
• Comply with articles 52, 55, 56 and 57 of Directive 2009/132/CE regarding the importation of goods for the benefit of disaster victims.  

This VAT exemption is applicable to the supplies and intra-EU acquisitions of goods that occur between 30.01.2020 and 31.07.2020. Input VAT of goods or services acquired, imported or used for the purposes of these VAT exempt transactions is fully deductible.