The Italian Supreme Court's decision in case 13717/2023 addresses the application of the reverse charge mechanism in the trade of used precious items.
The court emphasized the need for an objective assessment of the substantial elements that justify treating these items as gold material under Article 17, paragraph 5 of DPR 633/72.
This ruling came after the tax agency challenged a lower court's decision favoring a company in the precious metals sector.
The agency had issued assessment notices to the company, arguing that the reverse charge was improperly applied instead of the margin scheme outlined in Article 36 of Decree Law 41/1995.
The regional tax commission had previously supported the company's stance, citing the complexity of interpreting the applicable tax regimes.
The Supreme Court, however, highlighted the necessity of distinguishing between goods intended for consumption and those qualifying for reverse charge, based on purity requirements.
The court also noted the lack of evidence provided by the company to support its claim of selling non-consumable items.
This decision underscores the importance of clear evidence and proper classification in tax disputes, particularly in sectors dealing with precious materials.