New VAT Code: Renumbered Tables, Updated Tariffs, and Changes to Reduced Rates Effective 2027

• The new consolidated VAT law (Testo unico IVA) will take effect from January 1, 2027, replacing the current DPR 633/72.
• New tables specify goods and services eligible for reduced VAT rates, with renumbered sections: 4% (Table A, part II), 5% (part III), 10% (part IV), and agricultural/fish products (part I).
• References to customs tariff codes are updated to current TARIC codes, replacing outdated 1973 references.
• The exemption from VAT for sales of pasta, bread, etc., is abolished; these items will now be subject to the 4% VAT rate.
• For real estate, the definition of “non-luxury” homes is replaced with a reference to cadastral categories, aligning with recent tax authority interpretations.

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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