- Introduction of EPR for VAT Exemption: The Italian Revenue Agency clarified that habitual exporters can utilize advance payments towards their VAT plafond, allowing them to make purchases or imports without VAT payment, provided they issue a declaration of intent to the counterparty.
- Plafond Calculation Method: The VAT plafond for habitual exporters is calculated based on export and intra-Community supply ratios. Advance payments count towards the plafond from the time the invoice for the advance payment is issued, not requiring completion of the export transaction.
- Adjustments for Incomplete Transactions: If an export transaction does not finalize (e.g., due to issues during testing), the VAT plafond must be adjusted downward by the amount of advance payments made, ensuring compliance with established tax regulations.
Source Roedl & Partner
