1. 5% VAT on children’s items and feminine hygiene products.
Budget Law 2023 amends the VAT rates for children’s items and feminine hygiene products: From January 1, 2023, the rate of 5% will apply to these products.
2. Reclassification of active products
On December 1, 2022, the Official Journal of the EU published the Implementing Regulation EU 2022/2347 on the reclassification of groups of specific active medical devices without a medical purpose as defined in Annex XVI of Regulation EU 2017/745.
The Implementing Regulation introduces an exception to the general rule that active devices that do not fall into a specific risk class according to the classification rules are classified as Class I. The following devices are classified as Class I devices:
- Devices emitting high-intensity electromagnetic radiation intended for use on the human body for skin treatment are classified as Class IIb unless they are designed for hair removal, in which case they are classified as Class IIa;
- Devices intended for the reduction, removal, or destruction of adipose tissue are classified in Class IIb;
- Brain stimulation devices that apply electric currents or magnetic or electromagnetic fields to alter neuronal activity are classified as Class III.
3. The export of goods stolen in Italy is subject to VAT
With Decree No. 37271, published on December 20, 2022, the Court of Cassation states that in the case of theft of goods intended for export, if the robbery took place on Italian territory, once the goods have been handed over to the carrier appointed to collect them, the operation is considered complete and subject to VAT.
4. Electronic self-billing for non-returned packaging
The value of the packaging and containers carrying the goods is excluded from the taxable base if “the refund was expressly agreed upon at the time of return” (Article 15(1)(4) of Presidential Decree 633/72). Otherwise, the transfer of such packaging would correspond to an ancillary service, which would place the taxable base of the primary transaction below the one specified in Art. 12 of Presidential Decree 633/72.
5. Airline tickets with a diversified VAT regime
Identifying the relevant share in Italy and the “out of range” share for international flights is necessary. The online purchase of airline tickets on the companies’ websites entails different VAT obligations for the taxpayer depending on the flight route and whether the airline is established in Italy.