VAT Treatment of “Franco Valuta” Exports: A Case Study

• ALFA Società Agricola a r.l. exports wine to the United States.
• ALFA wants to use a pro forma invoice in foreign currency for faster and cheaper exports.
• The pro forma invoice is issued to the importer and the goods are cleared with a collective customs declaration.
• Individual invoices are issued to customers after the goods are cleared.
• The goods are stored in a warehouse in the US owned by a US company controlled by the logistics company.
• The goods are shipped with a pro forma invoice in foreign currency.
• The importer clears the goods and provides a collective customs declaration.
• The goods are transferred to the buyer after ALFA sells the wine to the individual US customer.
• The sale is documented with a non-taxable invoice.
• The invoices are sent to the US customers by the importer.
• Each customs declaration is attached to the corresponding sales invoices.

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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