Italy's Revenue Agency has confirmed that waste transportation services qualify for the reduced 10% VAT rate regardless of where the waste is ultimately destined, drawing a clear distinction between the act of transport — which remains preferentially rated — and physical disposal at landfills or non-recovery incineration facilities, which is subject to the standard 22% rate under the 2025 Budget Law.
The Italian Revenue Agency has clarified, on 17 March 2026, that waste transportation services will continue to benefit from a reduced 10% VAT rate, even when transporting waste destined for landfills or incineration facilities without energy recovery.
The 2025 Budget Law introduced restrictions on preferential VAT treatment for certain waste management activities. While the previous framework allowed a 10% rate for comprehensive waste management services—including storage, temporary deposit, and sewerage systems—the new legislation specifically excludes landfilling and incineration without efficient energy recovery. These operations now face the standard 22% rate.
Following consultation with the Ministry of the Environment and Energy Security, the Revenue Agency clarified that transportation constitutes an autonomous activity within waste management operations.
Under the Consolidated Environmental Act, transport is not merely an ancillary component of disposal but represents a distinct service with separate authorisation and traceability requirements.
The 10% rate applies to all waste transport activities regardless of the destination indicated on the Waste Identification Form (FIR) or the disposal code listed.
The Revenue Agency emphasised that VAT classification depends exclusively on the service’s nature, not the final destination or subsequent treatment of the waste. Only the physical disposal at landfills or non-recovery incineration facilities is subject to the higher 22% rate.
