The Italian Revenue Agency has published Circular No. 8/E of 6 April 2023, which clarifies that VAT treatment of goods and services supplied to the armed forces as well as goods imported by the armed forces. The Circular explains that as per Legislative Decree No. 72 of 27 May 2022, qualifying supplies of goods and services to North Atlantic Treaty Organization (NATO) forces and armed forces of EU Member States taking part in defense efforts in European Union activities under the common security and defense policy (CSDP) are non-taxable with the right to deduct (i.e., zero-rated). Qualifying imports may also be exempted in certain cases. This VAT treatment applies from 1 July 2022.
Source Orbitax
