2022 Budget Law – New provisions in the VAT, excise and consumption tax field

Prepared by Alessia Zanatto, Francesco Pizzo, Davide Accorsi, Alberto Corvitto and Francesca Elvira Romito

Law no. 234/202, concerning the “Budget of the State for the financial year 2022 and multi-year budget for the period 2022-2024” (hereinafter the “Budget Law”) was published in the Italian Official Gazette on 31 December 2021. In this document we briefly analyze the most significant changes that have been introduced to the Italian VAT, excise and other consumption taxes legislation.

Art. 1, paragraph 12 (Plastic and Sugar tax)

Plastic and Sugar tax are deferred to 1 January 2023. These provisions are introduced by the 2020 Budget Law in order to respectively restrict the use of single-use plastic packaging and the consumption of soft drinks containing sweeteners.

Art. 1, paragraph 13 (VAT rates for female tampons)

The VAT rate is reduced from 22% to 10% on female tampons intended for the protection of female hygiene that are not compostable or washable, i.e. not included in the definition of number 1-quinquies) of Table A, part II-bis, Presidential Decree No. 633/1972, in relation to which the 5% VAT rate applies.

Art. 1, paragraph 72 (confirmed the offset of tax credits to 2 millions euros)

It has been confirmed the increase to Euro 2 million of the limit of tax credits that can be offset with other taxes in the F24 form or refunded with the simplified procedure (provided for by article 34 of Law no. 388/2000).

In particular, the threshold to offset tax credits (including VAT) with other taxes or social contributions, via the F24 form, or through simplified tax refund procedure, had been increased up to Euro 2 million according to article 22, no. 1, Law Decree “Sostegni bis”, for the year 2021 only.

Art. 1, paragraph 506 (5% VAT rate for natural gas for civil and industrial uses)

In order to contain the effects of price increases regarding the natural gas industry, the Budget Law provides for the application of the 5% VAT rate with reference to the consumption of natural gas for civil and industrial uses, for the months of January, February and March.

 Art. 1, paragraph 527 (VAT rates for the supply of cattle and pigs)

In the special VAT regime for farmers, according to the article 34, Presidential Decree no. 633/1972, the compensation percentages will be extended to 2022 at 9.5% for the sale of cattle and pigs.

It should be noted that this provision had been adopted by the Decree-Law ‘Sostegni bis’, according to article 68, for the year 2021 only.

Art. 1, paragraph 683 (postponement of VAT exemption for non-profit organizations)

The new rules concerning the supplies of non-profit organizations, which are currently considered as out of scope of Italian VAT), as provided for by article 5, paragraphs 15-quarter, 15-quinquies and 15-sexies, of Decree-Law no. 146/2021 are postponed to 1 January 2024.

In particular, Law Decree no. 146/2021 establishes that certain transactions of non-profit organizations (e.g. provisions of services and supply of goods strictly linked to them), which are out of scope of Italian VAT according to the article 4 of Presidential Decree no. 633/1972, will be subject to VAT, even if they could be VAT exempt, without right to deduction, if among the other, the following conditions are met[1]:

  • the fact that exemptions do not cause a distortion of competition compared to business subject to VAT;
  • the above transactions (e.g. provision of services and supply of goods) are carried out in accordance with the institutional purpose.

Moreover, the postponement to 2024 also concerns the extension to voluntary organizations and social promotion associations of the rules set out in the article 1, paragraphs 58 to 63 of Law no. 190/2014, provided for the flat-rate regime.

Art. 1, paragraphs 923 and 924 (postponement of payments by associations and non-professional clubs)

In order to support national sports federations, and professional and non-professional sports clubs that have their tax domicile, registered office or headquarters located in Italy and operate in the context of sporting competitions taking place, the Budget Law postpone certain payments, including the terms of payments relating to VAT payments due in January, February, March and April 2022.

The suspended payments must be made, without application of penalties and interest, in a single solution by 30 May 2022 or by different instalments up to a maximum of seven equal monthly instalments, equal to 50% of the total amount due, and, in such a case, the last instalment should be paid within in December 2022 and it will be equal to the residual value.

Art. 1, paragraphs 985 – 987 (excise duty on beer)

For the year 2022 only, the Budget Law has provided a reduction in the general excise duty on beer, which is set at €2.94 per hectoliter and grade-Plato.

[1] Non-exhaustive list – please refer to the article 15-quater of the mentioned Law-Decree.

Let’s Talk

For a deeper discussion, please contact:

Alessia Angela Zanatto

PwC TLS Avvocati e Commercialisti


Francesco Pizzo

PwC TLS Avvocati e Commercialisti


Davide Accorsi

PwC TLS Avvocati e Commercialisti