Ruling: Classification and VAT rate for mixed composition vegetable cat litter

• Alpha S.p.A. is an Italian company in the pet food sector
• They want to buy and sell a specific type of vegetable litter for cats called “X”
• The litter is biodegradable and compostable, made mainly of corn husks and other plant additives
• The Customs Agency classified the product under Chapter 23 of the Customs Tariff, with a 4% VAT rate
• The company argues that mixed products should be classified based on their function and intended use for VAT purposes
• They reference Article 98 of the Council Directive 2006/112/EC on VAT, which allows for different VAT rates for specific categories of goods and services

Source: agenziaentrate.gov.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.

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