Ruling 360: VAT Rate for Sales and Leases of Rolling Stock

The Italian Revenue Agency provided their view regarding the application of value-added tax (VAT) to the sales and leases of rolling stock, such as trains and trams. The document references various laws and regulations to provide clarification on the applicable VAT rates. It states that fixed transport lines, including metros and trams, are considered primary urbanization works for VAT purposes. The reduced VAT rate applies not only to these specific lines but also to other fixed transport lines used for passenger transportation, regardless of their purpose or characteristics. The reduced rate also applies to the sale of components that constitute these transport lines.Furthermore, the document explains that the VAT rate for rolling stock, including locomotives and carriages, is 10% based on the combined provisions of several legislative acts. The same rate applies to services related to these goods, such as contracts for construction, leasing, maintenance, and repair. The document emphasizes that the VAT rate for finished goods used in the construction or repair of rolling stock for specific transport lines remains distinct.The opinion provided in the document relies on the assumption of the accuracy and completeness of the information presented in the inquiry and is limited to the specific questions raised by the requesting party.

Source: agenziaentrate.gov.it

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