Facts of the case

The taxpayer company carried out purchases, territorially relevant in Italy, from an Italian supplier of goods (marine lubricants), pursuant to article 7-bis of Presidential Decree 633/72, subsequently resold in the territory of Italy to both non-resident economic operators established outside the EU (constituting an export sale under article 8, paragraph 1, letter b), Presidential Decree 633/1972), and non-resident EU economic operators.

The second-instance tax judges upheld the appeal of the non-resident company claiming VAT refund pursuant to Directive 2008/9, citing article 148 of VAT Directive 2006/112, whereby supplies of goods intended for the supply and provisioning of ships engaged in navigation on the high seas are exempt from VAT.

The judges further noted that the Court of Justice of the EU had already held that the requirement of high-sea navigability of a ship must refer to vessels that are engaged predominantly in such routes (see C-291/18).

Consistent in this regard is also the Italian Tax Authority, for which, in order to carry out bunkering operations under the VAT exemption regime, the ship must carry passengers for remuneration or be engaged in commercial, industrial and fishing activities. Furthermore, to be considered as operating on the high seas, the ship must navigate predominantly in that part of the sea...