Italy: Reverse Charge Applies to Biometane Resale Purchases

• The Italian Tax Authority clarified VAT treatment for purchases of biomethane by a company buying from a producer for resale.
• Under Article 17(6)(d-quater) of DPR 633/72, reverse charge applies to gas supplies made to a “taxable reseller.”
• Whether the buyer is a reseller depends on the actual intended use of the gas in the specific transaction, not on the buyer’s overall business sector or corporate purpose.
• A company can qualify as a “taxable reseller” even if it is not ordinarily active in the energy sector, provided it acquires the gas for resale rather than consumption.
• In the case examined, the buyer was deemed a reseller of biomethane, so the supply was subject to reverse charge VAT.

Source: eutekne.info

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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