Ruling 371: Medical device consisting of equine collagen powder is subject to a reduced VAT rate of 10%

ALFA (hereinafter referred to as “Company,” “Applicant,” or “Taxpayer”) states that it has started production of a medical device (hereinafter referred to as the “Product”) consisting of equine collagen powder. According to the Applicant, the Product “is indicated for the regeneration of dermal and subdermal connective tissue” as it “fills cutaneous depressions by forming a collagen matrix that promotes the normal tissue regeneration activity performed by fibroblasts in the dermis.” Specifically, the “device… promotes the regeneration of connective tissue in the dermis by creating optimal conditions for the physiological neoformation of collagen, also known as cutaneous regeneration or bio-revitalization.” In light of the above, the Company requests clarification regarding the applicable VAT rate for the supply of the aforementioned product. For this purpose, it provides the required technical assessment opinion issued by the Agency of Customs and Monopolies (hereinafter referred to as “ADM”), which, based on the chemical analysis of a product sample, classified it under subheading 3004 9000 of the combined nomenclature.

According to the Italian Revenue Agency, the medical device in question, consisting of equine collagen powder, falls under subheading 3004 9000 of the combined nomenclature. This classification places it among pharmaceutical products subject to a reduced VAT rate of 10%. Therefore, the supply of the product is subject to the 10% VAT rate specified in number 114) of Table A, Part III, attached to the VAT Decree.

Source: agenziaentrate.gov.it

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