The VAT Act 2013 became effective on 2 September 2013. The value added tax (VAT) is to be charged at a standard rate of 16%. A number of exemptions have been included in the VAT legislation including exemptions for medicine and vaccines, wheat, maize flour and milk formula for infants. There is also an exemption for taxable supplies imported or purchased for mining or oil prospecting or exploration; and for taxable supplies imported or purchased for construction of a power generating plant to produce electricity for the national grid. Any supplies imported or purchased by a company that has been granted a mining prospecting license will also be exempt from VAT.
Italy: VAT rise may be delayed to 2014
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