Investment in Italy

Investment in Italy8.VAT8.1ScopeVAT is due on any taxable supply of goods or services made in Italy by a taxable personin the course or furtherance of its business. Supply means all forms of supply but doesnot normally include anything done otherwise than for a consideration. However, certaintransactions without consideration are deemed to be supplies, e.g. conditional sales, leasecontracts containing a binding clause providing for the transfer of ownership, the privateuse of business assets (or, more generally, their use for purposes other than those of thebusiness), disposals free of charge, and supplies of services (where the value exceeds EUR25.82) for private use or for free.VAT is also due on all imports.8.2RatesThe standard rate of VAT is 20 percent.There is a reduced rate of 10 percent for some goods and services, including:• certain foods• domestic fuel and power• public transport• certain pharmaceutical products• water• hotel accommodation• the services of writers and composers• social housing• power deriving from renewable sources.In addition, there is a reduced rate of 4 percent for certain goods and services, including:• basic foodstuffs• books and newspapers• a person’s main dwelling• certain pharmaceutical products• medical equipment and aids for the handicapped.The list of zero-rated supplies includes:• exports and EU supplies• the supply, modification, repair, maintenance, chartering and hiring of sea-going vesselsand aircraft used for international traffic• international transport services• services directly connected with exports or imports• work on goods to be delivered outside Italy.© 2012 KPMG S.p.A., KPMG Advisory S.p.A., KPMG Fides Servizi di Amministrazione S.p.A., KPMG Audit S.p.A., Italian limited liability share capital companies, and Studio Associato Consulenza legale e tributaria, anItalian professional partnership, are member firms of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.75