The Tax Office in Italy decided that the 4% VAT rate could be applied only to edible pumpkins. Pumpkins can also be used for ornamental purposes. Therefore, it was concluded that for “Halloween pumpkins” and ornamental items, such as agricultural and unprocessed products, the normal VAT rate should not be applied, but as follows:

a) 4% of the VAT rate, if it is intended for food as “edible vegetables and plants”, provided for in No. 5), Table A, Part II, attached to the Presidential Decree of October 26, 1972, ref. No. 633 (hereinafter referred to as “VAT INVOICE”);
b) the VAT rate of 10 percent if for ornamental purposes, because “parts of the plant are intended for ornamentation” as provided for in no. 20) In such cases, the transferor will be must use in commercial documents information such as: bill of lading and invoice, descriptions such as “Halloween pumpkins”, “decorative pumpkins”, “non-food pumpkins”.

THE OPINION OF THE TAX OFFICE
The required technical opinion of the Excise, Customs and Monopoly Agency (abbreviated as “ADM”) has been submitted by the Taxpayer for only two types of pumpkins that can normally be found on sale:
– Cucurbita maxima pumpkin, with generally round and colored yellow-orange fruits that can also reach large sizes. For this reason, it is mainly used for decorative purposes. Commonly referred to as “Halloween gourd”, however, it is edible and can also be used in cooking;
– gourd cucurbita lagenaria, the fruit of which generally has the characteristic “cob shape” and is also used for ornamental purposes. This variety of pumpkin is also edible and can be cooked.

With regard to the VAT rate applicable to the supply of pumpkins, the foodstuffs of the types examined by ADM are considered to fall within the limits of n. 5) Table A in Part II annexed to the VAT Regulation, which provides that vegetables and plants edible, excluding truffles, fresh, chilled, presented by immersion in salt, sulphated water or water with the addition of other substances providing temporary storage, but not specially prepared for immediate consumption; dried, dehydrated or evaporated, whether or not cut or sliced, but not otherwise prepared (see ex 07.01 – ex 07.03 – ex 07.04) ‘. For sale of the two types of pumpkins listed above, therefore, a VAT rate of 4% applies.
With regard to the VAT rates applicable to the sale of other types to individual pumpkins, for all purposes, please note that, according to the Court’s continued jurisprudence in the EU judiciary, the application of reduced rates is an exception to the application of the standard VAT rate and therefore their application as regards rules, must be subject to restrictive interpretation.
In particular, the Court of Justice of the EU has repeatedly stated that Member States may apply a reduced VAT rate to specific and specific aspects of categories of services or goods for which they are entitled to apply such a rate (selective application), provided that the principle of tax neutrality is respected (see e.g. judgment of 27 February 2014, Pro Med Logistik and Pon gratz (Case C-454/12 and Case C-455/12, EU: C: 2014: 111, paragraphs 43-45 and the case-law cited therein).

Therefore, it is considered that the 4 percent rate can apply only to edible pumpkins, although they can also be used for ornamental purposes, such as the two types subject to ADM’s opinion.