In these days the new 2019 Budget Law is being heatedly discussed.
The topics of interest are manifold, but, here, we focus on a novelty that, if approved, would affect farms.
The possibility of increasing the compensation percentages for wood is currently being discussed . This would mean that, if this measure were approved , farms under the special VAT regime could enjoy an advantage in terms of tax savings starting from 2019.
The special VAT regime for agriculture provides for the payment of value added tax by reducing the VAT payable on sales by a predefined percentage, a percentage that varies according to the type of product sold. Therefore, as the compensation percentage increases, the VAT to be paid decreases, with consequent tax savings for companies.
If the measure to increase the VAT compensation percentages on wood is confirmed, therefore, farms in the special VAT regime could find themselves paying less VAT on sales of timber .
Pending any confirmations, which may occur upon conclusion of the approval work for the 2019 Budget Law, it will be interesting to follow the evolution of the situation.