Italy's Revenue Agency has ruled that the customs classification assigned to a product determines whether it qualifies for reduced VAT, allowing 10% for one food supplement and 4% for chicken manure fertiliser, but not for creatine monohydrate.
Italy’s Revenue Agency has ruled that the customs classification assigned by the Italian Customs and Monopolies Agency (ADM) is the decisive factor in deciding whether a product qualifies for a reduced VAT rate.
The position was set out in Responses No. 209 and No. 210 issued on 11 November 2026, which dealt with food supplements and chicken manure. In both cases, the outcome depended on the customs code given to the goods.
Food supplement
Response No. 209 concerned a company that manufactures and markets two food supplements. The first is based on whey protein enriched with digestive enzymes, magnesium bisglycinate, vitamin B6 and other ingredients. The second is a chemical compound made up solely of creatine monohydrate. The company argued that both should attract the reduced 10% rate and obtained technical opinions from ADM to support its case.
ADM assigned the first product CN code 2106 10 20. It noted that the Explanatory Notes to the Harmonised System place under heading 2106 food supplements made of vitamins, minerals, amino acids and other dietary substances, provided they do not contain active substances in quantities sufficient to give therapeutic or preventive properties.
The Revenue Agency said CN code 2106 corresponds to heading 21.07 of the customs tariff in force on 31 December 1987, as referred to in item 80 of Table A, Part III, attached to the VAT Decree. Sales of this product may therefore benefit from the 10% rate.
Creatine
The outcome was different for the second product. ADM classified creatine monohydrate under CN code 2925 29 00, which covers chemically defined compounds presented separately. As this code does not match any category eligible for reduced rates in Parts II, II-bis and III of Table A attached to the VAT Decree, the Revenue Agency ruled out a reduced rate. Sales of the product are subject to the ordinary 22% VAT.
Chicken manure
Response No. 210 involved an agricultural company that raises laying hens and sells the manure from its operations to a company specialising in organic fertilisers. The seller argued that the 4% rate should apply when manure is intended for agronomic use as fertiliser, in line with industry rules and regional provisions.
The Revenue Agency first said the company’s reference to Resolution No. 59/2024, which concerned animal bedding, was not relevant, as that matter involved a different product. ADM then classified “manure from free-range laying hens” under CN code 3101 00 00, which covers animal or vegetable fertilisers. Heading 3101 of the Harmonised System expressly includes animal excrement, including poultry manure, used as fertiliser.
The Revenue Agency pointed to item 19 of Table A, Part II, of the VAT Decree, which provides for a 4% rate on fertilisers. It added that, following the repeal of Law No. 748/1984 and the subsequent Legislative Decree No. 217/2006, the current legal reference is Legislative Decree No. 75/2010. This defines fertilisers and regulates organic fertilisers, including dried poultry manure.
Given ADM’s classification and the sale to a company specialising in organic fertilisers, the Revenue Agency agreed with the applicant and recognised the 4% rate.
Use condition
The Revenue Agency specified, however, that if the manure were intended for a different use, the ordinary VAT rate would apply instead.
The two responses show that products sold under a similar commercial label can attract different VAT rates depending on the code assigned by ADM.
