There is a double condition to apply the non-taxable Vat regime on international services and the service connected to international trade provided on free ports in border areas (ports, airports, train station).

The Italian Tax Agency released a legal opinion on an issue, asked by a service company that acts in airports free areas. The company has recently purchased some new lands and buildings in order to expand the activity in the free area, therefore, it was interested to an extended application of tax benefits.

The Agency has stated that to apply the non-taxable Vat regime the services need be provided in the free ports areas and they must be connected to the operation or the maintenance of the structures in the areas or to the movement of goods and transports. As a result of that, the regime shall not be applied to a new project and the related purchases (new buildings, structures), although located in a free area.

This interpretation line confirm a previous circular and a legal opinion, both released in 2008.

According to the 2007 Italian budget act, indeed, the non-taxable Vat regime is recognized to projects to be performed in ports or adjacent areas, only if the project was already planned and only if connected to adaptions of existing structures.