cars, entertainment expenses) and to companies carrying out both taxable transactions and transactions exempt from VAT with no right to deduct. Special limitations apply in relation to specific items (e.g. Input VAT on purchases of goods and services related to business activity generally is allowed for recovery. transfer of money, transfer of going concern). Other specifically listed transactions are also out of the VAT application scope (e.g. hospital and medical care, education, insurance services, specific financial services, supply, leasing of particular immovable property). Specific supplies of goods and services expressly listed in the law are exempt from VAT (e.g. In this respect, the invalidation of the declaration of intent will lead the rejection of the e-invoice sent to the SdI system by the supplier. the field 2.2.1.16.4 should report the date of the receipt, issued by the Italian tax authorities, that contains the above protocol number.field 2.2.1.16.2 should report the tax authorities protocol of the declaration of intent and its progressive number separated by the “-” or “/” (e.g.field 2.2.1.16.1 should report the wording “INTENT”.Moreover, from 1 January 2022, the supplier who received a declaration of intent, in addition to the indication of the value “N3.5” into the field 2.2.1.14 “Natura”, will be required to fill in the block 2.2.1.16 “AltriDatiGestionali” of the. In this respect, in case an irregularity is detected, the Italian tax authorities could also invalidate the declaration of intent sent by the usual exporter. 293390/2021, the Italian tax authorities defined the criteria related to the internal checks they will carry out on the usual exporters. 633/1972' as VAT treatment) via the SDI ( Sistema di Interscambio) with the indication of the protocol number of a declaration of intent invalidated by the Italian tax authorities. it will no longer be allowed for the supplier to issue an invoice ('exempt from VAT according to article 8, paragraph 1, let.if, as a result of the above-mentioned analyses, the Italian tax authorities find out that one taxable person does not meet the conditions to issue a 'declaration of intent', the latter will be prevented from the possibility of issuing new declarations of intent via electronic means to the Italian tax authorities, and.The Italian tax authorities will carry out specific risk analysis and substantial controls with the aim to prevent the release of fake declarations of intent and to invalidate those fake declarations already issued. The content of the declarations of intent is defined by Act of the Italian tax authorities no. In case of import, the importer of goods has to quote on the customs declaration the details of the protocol number of the receipt.With reference to the applicable penalties in relation to the supplier who does not take care to check whether the letter of intent has been duly submitted, a substantial penalty ranging from 100% to 200% of the VAT amount applies. After checking the above, the protocol number of the receipt has to be quoted on each invoice issued without application of VAT towards the usual exporter. The supplier is required to check, on the Italian tax authorities’ website or in its own Tax Box ( Cassetto Fiscale), whether the letter of intent has been duly submitted.The usual exporter is required to submit via electronic means the declaration of intent, which can concern more than one transaction, to the Italian tax authorities, who will issue a receipt with a specific protocol number.The exemption with right to deduction is subject to the following procedures: Under certain conditions, transactions with taxable persons who usually carry out export of goods are exempt from VAT with right to deduct. Intra-Community supplies and exports are exempt from VAT under certain conditions. 10% for electric power supplies for listed uses and listed drugs.5% for certain health services, for the sale of food herbs, and for certain transport services on seas, lakes, and rivers.4% for listed food, drinks, and agricultural products, and e-books/e-periodicals that meet certain requirements.Reduced rates are provided for specifically listed supplies of goods and services, such as: Intra-Community acquisitions are also subject to VAT under certain situations. Italian VAT ( Imposta sul Valore Aggiunto) applies to the supply of goods and services carried out in Italy by entrepreneurs, professionals, or artists and on importations carried out by anyone.