VAT rate for the purchase and rental of goods necessary for the containment of the emergency Covid-19

published on December 15, 2020 | reading time approx. 1 minute

by Skevi Licollari, Rödl & Partner Milan, and Arianna Busdraghi

The rental of biomedical equipment made from 19 May to 31 December 2020 are exempt from VAT, with the right to deduct. This is established by Article 124 of Decree Law 34/2020, the so-called Relaunch Decree. In addition, for the same operations carried out from 1 January 2021 will be applicable the VAT rate reduced by 5 per cent.

With the Circular 26/E/2020, the Agenzia delle Entrate, i.e. the financial administration entity, has also clarified that this VAT treatment is applicable to both onerous and free supplies of the same goods, as well as to the provision of services relating to contracts for work, tender, leasing or rental. It should be noted that the usual provisions of Presidential Decree 633/1972 apply to the time of execution of transactions.

In more detail, for movable goods the day of delivery or shipment generally applies, while for services the payment of the consideration applies, except in the case of advance payments.

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