Italy: Import VAT is considered customs duty

Legislative Decree no. 141/2024 (effective October 4, 2024) introduced several changes in the treatment of value added tax (VAT) on imports. In addition, the customs agency published a new circular to address the main changes introduced by the decree.

Previously, import VAT was treated as distinct and separate from customs duties defined in European Union (EU) and domestic law. Both the Court of Justice of the European Union (CJEU) and Italian Supreme Court have repeatedly decided that import VAT is distinct from import duties and penalties must be determined separately on the respective amounts due under each tax.

However, Legislative Decree no. 141/2024 equates import VAT with customs duties, including them both in the concept of border duties, together with excise duties, monopoly duties, and all other taxes due at the point where the goods enter.

Under the new rules, import VAT is still not considered a border duty when goods and brought into free circulation in Italy and (1) placed in an Italian warehouse or (2) transported to another EU member state.

Read an October 2024 report prepared by the KPMG member firm in Italy