VAT rate of 5% for the ancillary services related to the natural gas supplies – Resolution n. 47/E of the Italian Tax Authorities

Prepared by Francesco Pizzo, Annarita Terrone and Angelo Fiorella

With Resolution n. 47/E published on September 6, 2022, the Italian Tax Authorities provide clarifications with reference to previous Response to the ruling n. 368, published on July 7, 2022.

In particular, in order to mitigate the increases of the gas’ cost, the article 2 of the Law Decree n. 130 of September 27, 2021 provides, as a temporary and emergency measure, the application of the 5% VAT rate for the supply of natural gas used for combustion for civil and industrial uses.

With the Response to the ruling n. 368, the Italian Tax Authorities specified that this rate could find application only for the supplies of natural gas.

Instead, for the ancillary services to the natural gas supplies or to the fixed portion of the tariff the ordinary VAT rate of 22% should be applied.

Partially overcoming this thesis, with Resolution No. 47/E, in line with the temporary emergency regulations and with the aim to reach the most significant possible reduction of the final cost of gas charged to the end user, the Italian Tax Authorities clarifies that the VAT rate of 5%, will be applied to the entire gas supply rendered to the end user, as reported in the invoices issued, during the period in which said temporary and emergency law will be in force.

Therefore, 5% VAT rate applies also for ancillary services and fixed portion of the tariff.

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Francesco Pizzo

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