VAT reimbursement

Description

Brief description of the instrument and its modus operandi

Any formally recorded entrepreneur can claim a certain percentage of the paid VAT according to the specie is producing. For instance a wild mushroom producer can claim the 100% of paid VAT (he/she pays 4% of the added value and he/she can claim back all); a beekeeper can claim a reimbursement of the 90% of the paid VAT (he/she pays 10% of the added value and he/she can claim back 90% of the payment); a wild game producer can claim back only the 37.5% of the paid VAT (he/she has to pay 20% of the added value and he/she can claim back the 37.5% of the money they paid)

Which problem the instrument is supposed to solve?

The main problem is the black market and the lack of income declaration; the taxation of certain products is quite high despite the reimbursement mechanism.

Purpose or main objective / overall goal of the instrument?

Reduce the fiscal pressure on “weak productions” in order to attract new entreprenaurs

Side objectives/goals of the instrument?

In theory increment of employment in the primary sector; in reality it has not been measured for NWFP

Which laws and regulations support the implement of this instrument?

Presidential Decree 633/72

The initiator/promoter of the instrument?

Initially it was pushed by the farmer associations

Which organizations are involved in the operationalization of the instrument?

Any company or embody that produce any type of value within the state; the minister of economy with its fiscal agencies within the state.

How the monitoring is ensured?

it is ensure by the national fiscal agency. The company have to show all the emitted invoices within six month after the end of the fiscal year (31st of December) and pay the whole VAT. The reimbursement occur within a year after the end of the claiming period.

How the compliance is ensured?

the compliance is based on the formal invoices emitted by the company, basic information for the income declaration

How is the overall performance of the instrument?

In general it stimulated the formation of micro and small companies, with some successful case on the honey and MAP sector.

Brief description of the context for the emergence of the instrument

Lack of entrepreneurship in the country and high divergence between the urban and rural development. The instrument allowed to enhance the

Have any of the items mentioned above changed since the instrument entered into force?

Yes

What are the main reasons or drivers behind changes mentioned?

the lobbing effect of certain association increase the number of species where the VAT reimbursement mechanism was considered.

Is there any qualitative or quantitative study of the impacts of the instrument?

No

Related to

• VAT reimbursement for NWFP producers (1970)

More information about properties

Instrument
Year	since the 70s
Policy area
Affected activity
Affected actors	Picker/harvester/hunter, Processor
Products	Game, Berries, Fruits, Mushrooms/truffles, Nuts, Bark/cork, Other NWFP, Honey and Bee products
Subject
Promoter/initiator
Zone
Countries	Italy
Regions (NUTS 2)	Trentino-South Tyrol
Focus on NWFP
Document category
Instrument type
Legal status	"{{{Legal status }}}" is not in the list of possible values (Binding, Non-binding) for this property.
Geographical scope	National