Indirect Tax Alert | 4 March 2014
Italian Tax Authorities clarify application of the VAT exemption for Milan Expo 2015
By means of Resolution No. 10/E of 15 January 2014, the Italian Tax Authorities provided clarifications on the application of the VAT exemption related to purchases of goods and services concerning the official activities carried out by the Commissariats General of Section1 joining Milan's Universal Exposition “Feeding the Planet, Energy for Life“ (Expo Milano 2015).
The Universal Exposition is a strategic global event that is expected to bring 140 countries and 20 million visitors to the city of Milan for a period of six months.
Further to the execution of the agreement between the Italian Government and the Bureau International des Expositions,2 a specific VAT exemption with the right of deduction has been granted to the Expo Milano 2015's Commissariats General of Section with the aim to facilitate their participation in the international event.
Specifically, the VAT exemption applies to purchases of goods and services, as well as for imports of goods, related to the official activities carried out by the mentioned structures which will support in Milan the Governments of any nation and international organization participating in the 2015 Universal Exposition.
The VAT exemption
The VAT exemption shall apply to purchases of goods and services and imports:
1. Related to the official activities carried out by the Commissariats General of Section; and
2. Whose amount is higher than €300,00.3
How to apply the VAT benefit
Even though not specifically provided by the above-mentioned agreement and the related implementing Italian Law provisions, in order to speed up and facilitate the application of such benefit, the Italian Tax Authorities have recently disclosed a draft of the statement that the beneficiary shall use to request the application of the VAT exemption.
In particular, by filing the sample of the statement attached to the mentioned Tax Resolution, Commissariats General of Section shall be immediately entitled to claim the application of the VAT benefit from their suppliers. The statement must report the relevant Law reference (i.e., Article 10, paragraph, 5, of the agreement between the Italian Government and the Bureau International des Expositions of 11 July 2012) and the purpose of the purchase. In fact, through the said statement, Commissariats General of Section declare – under their own responsibility – that they are willing to purchase goods and services – duly identified – for the purposes of the official activities related to the their participation to Expo Milano 2015.
Upon receipt of such statement, the suppliers shall easily identify the transactions to be treated as not subject to VAT with right of deduction.
The sample of statement
According to the Italian Tax Authorities, Commissariats General of Section must declare the following information.
Section A: Beneficiary data
i) Beneficiary (denomination of the Commissariat General of Section and its representative);
ii) Italian address of the Commissariat General of Section or its representative;
iii) Country joining to the Universal Exposition.
Section B: Declaration
The beneficiary attests that:
i) The goods and services as listed below (in Section C of the form) are purchased for the official Expo Milano 2015 activities;
ii) The goods and services are compliant with the requirements set out by Article 10, paragraph 5, of the agreement between the Italian Government and the Bureau International des
Expositions (acknowledged with Italian Law No. 3 of 14 January 2013);
iii) The purchases of goods and services are not subject to VAT with right of deduction;
iv) The data and information declared are issued in good faith.
Section C: List of goods and services
i) Supplier data (name, its VAT No., address);
ii) Details of goods and services purchased (No., description, quantity, consideration excluding VAT – both for each unit and for the total amount).
The form must be issued in duplicate (one for the supplier and one for the Commissariat General of Section to be kept for VAT purposes), dated and duly signed by the beneficiary.
Finally, the Italian Tax Authorities clarified that if VAT has been already been incorrectly, charged to Commissariats General of Section before the clarifications given by the mentioned Tax Resolution (i.e., until 15 January 2014), the suppliers can issue a VAT Credit Note4 (within one year time).
1. These are structures created ad hoc by each country or international organization participating in Expo Milano 2015.
2. See Article 10, paragraph 5, of the Agreement between the Italian Government and the Bureau International des Expositions (i.e., “BIE”), dated 11 July 2012, acknowledged in Italy by means of Italian Law No. 3 of 14 January 2013.
3. Such a limit is set out by Article 72, paragraph 2 of d. P.R. n. 633 of 26 October 1972.
4. See Article 26, paragraph 2 and 3, of d. P.R. n. 633 of 26 October 1972.
For additional information with respect to this Alert, please contact the following:
Studio Legale Tributario in association with Ernst & Young, Rome
- • Nicoletta Mazzitelli
+39 06 855 67323
- • Valentina Casale
+39 06 855 67334
Studio Legale Tributario in association with Ernst & Young, Milan
- • Silvia Confalonieri
+39 02 851 4559
- • Simonetta La Grutta
+39 02 851 4586
- • Maria Michela Mattei
+39 02 851 4510
- • Anselmo Martellotta
+39 02 851 4485
- • Emanuele Muolo
+39 02 851 4458
Studio Legale Tributario in association with Ernst & Young, Torino
- • Anna Paola Deiana
+39 011 516 5293
EYG no. CM4223