- The Italian tax agency, Agenzia delle Entrate, has clarified that social cooperatives can still apply the reduced VAT rate of 5% even if they are commercial entities.
- This comes after the repeal of provisions related to non-profit organizations (ONLUS) in the Third Sector Code, which replaced the reference to ONLUS with entities of the Third Sector (ETS) that are non-commercial in nature.
- The clarification was made by Marco Peirolo, a commercial accountant in Turin and member of the VAT and other indirect taxes commission at CNDCEC.
- The agency’s confirmation means that social cooperatives can continue to benefit from the reduced VAT rate even if they are classified as commercial ETS.
Source: ipsoa.it
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
