Prepared by Davide Accorsi, Luca Ghelli and Andrea Casalini
By the Legal Advice n.12 of 7.09.2021, the Italian tax authorities clarified that the reduce 4% VAT rate is always applicable in transactions involving olive oil, regardless of its intended use.
This means that the 4% can also be applied to olive oil used in fields other than food, such as, for example, the cosmetic one.
In this regard, as noted by the Italian tax authorities, the point no. 13, part II, of Table A, attached to the Presidential Decree no. 633, dated October 26, 1972, differently from what it is stated for “vegetable oils”, does not require for the olive oil the destination for human or animal nutrition.
However, it should be noted that in order to apply the 4% it will be necessary to verify that the olive oil falls within customs headings 15.09 and 15.10, which include only oils obtained from the processing of olives and whose characteristics relating to the content of fat acids and sterols are indicated in Annex I of Regulation (EEC) no. 2568/91 of the Commission.
Accordingly, olive oils chemically changed (in particular re-esterified oils) and blends composed from olive oils and oils of a different nature can’t benefit to the special VAT regime.
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