E-commerce in agriculture

With the Decree 13 January 2015 no. 273 of the Ministry of Agriculture, Food and Forestry Policies in accordance with the Ministry of Economic Development and the Ministry of Economy and Finance (the "Decree 273") – in implementation of the art. 3 of the Law Decree 24 June 2014, no. 91 – a tax credit was expected for the expenses of new investments incurred for the construction and expansion of IT infrastructure aimed at strengthening electronic commerce, in favor of enterprises producing agricultural, fishing and aquaculture products, of which Annex I of the Treaty on the Functioning of the European Union.

It should be recognized that the sector of digital commerce is growing at an important pace and it is expected that 2015 will close with a turnover in Italy of about 15 billion euro.

In particular, the growth rate compared to the year 2014 in some sectors was particularly important, given that it was 21% in the publishing sector and 22% in the food industry.

Therefore, the aim was to encourage the use of e–commerce, as a means to increase sales and improve the distribution network of companies operating in the agricultural and fishing sector, and to promote a process of internationalization. To complete the regulatory framework, the Ministry of Agriculture Food and Forestry Policies (MIPAAF) recently issued the Circular no. 67351 of 8th October 2015 which has defined the procedures for submitting applications for the allocation of the tax credit for the creation and expansion of IT infrastructure, exclusively for the launch and development of electronic commerce, of which the aforementioned Decree 273.

Beneficiaries: The request for the allocation of the tax credit for the creation and expansion of IT infrastructure is for the following types of subjects:

a) small and medium–sized enterprises ("SMEs") and companies other than SMEs (the "LE") that produce agricultural, fishing and aquaculture products included in Annex I of the Treaty (TFEU)

b) SMEs, as defined in Annex I of the Regulation (EU) No. 651/2014, which produce agricultural food, fishing and aquaculture products that are not included in the said Annex I of the Treaty (TFEU).

The Decree grants the concession also to the enterprises incorporated as a cooperatives or that are grouped in consortia.

Eligible for aid investments: The costs incurred in the construction and expansion of IT infrastructure exclusively for the launch and development of e–commerce, related to:

(a) technological equipment;

(b) software;

(c) design and implementation;

(d) database and security systems development.

The value added tax (VAT) is not permitted, except in cases where it is not recoverable under national VAT legislation.

Projects eligible for financing: The expenditure for new investments incurred for the creation and expansion of IT infrastructure aimed at strengthening electronic commerce, in favor of enterprises producing agricultural, fishing and aquaculture products provided for in Annex I of the Treaty on the Functioning of the European Union.

Incentive period: They are eligible for the concession only expenditure incurred for new investments made for the first tax year, from 14th March 2015 to 31st December 2015, and for the two subsequent tax years.

Concession: The tax credit recognized in the rules varies in accordance with the said Decree 273, depending on the size of the company and of the prevailing activity actually performed and declared for VAT and of the company’s size.


In particular, the tax credit is estimated as follows:

a) in the measure of 40 per cent and within the limit of € 50,000 of the amount of investments made in each of the tax periods, for small and medium–sized enterprises operating in the production, processing and marketing of agricultural products listed in Annex I of the Treaty on the Functioning of the European Union;

b) in the measure of 40 per cent and within the limit of € 50,000 of the amount of investments made in each of the tax periods, for small and medium–sized enterprises for which do not occur the conditions referred to in subparagraph a) and for companies other than small and medium–sized enterprises as defined in Regulation (EU) No. 651/2014, operating in the processing and marketing of agricultural products listed in Annex I of the Treaty on the Functioning of the European Union;

c) in the measure of 40 per cent and within the limit of € 15,000 over three fiscal years of the amount of investments made in each of the tax periods, for small and medium–sized enterprises for which the conditions referred to in a) and for companies other than small and medium–sized enterprises as defined in Regulation (EU) No. 651/2014, which are active in the primary production of agricultural products listed in Annex I of the Treaty on the Functioning of the European Union;

d) in the measure of 40 per cent and within the limit of € 30,000 over three tax years the amount of investments made in each of the tax periods, for small and medium–sized enterprises and companies other than small and medium–sized enterprises as defined by Regulation (EU) No. 651/2014, operating in the production, processing and marketing of fishing and aquaculture products listed in Article 5, subparagraph a) and b), of Regulation (EU) No. 1379/2013;

e) in the measure of 40 per cent and within the limit of € 50,000 of the amount of investments made in each of the tax periods, for small and medium–sized enterprises that produce agricultural food, fishing and aquaculture products that are not included in Annex I of the Treaty on the Functioning of the European Union;

f) in the measure of 20 percent and 10 percent, and within the limit of € 50,000 of the amount of investments made in each of the tax periods, respectively for small and medium–sized companies that produce agricultural food, fishing and aquaculture products that are not included in Annex I of the Treaty on European Union, under the conditions laid down in Regulation (EU) No. 651/2014 of the Commission of 17th June 2014 declaring certain categories of aid compatible with the common market in application of Articles 107 and 108 of the Treaty. In the event that the demands of tax credit should be higher than the amount of funds available, the tax credit will be reduced proportionately, according to the ratio of the amount of allocated funds and the total amount of the credit due.

Given the positive value of the concession and given the purpose of the intervention it is desirable that these covers are significantly increased in the coming years, in order to actually make them accessible to a large number of companies in the sectors concerned.

Organised by lawyer Luca Moro

This document has the sole purpose of outreach and information and does not represent, in any way, nor does it constitute, legal advice on the matters discussed in it.

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