Purchases and sales on the CIC market qualify as supplies of services and the chargeability of VAT depends on the place where the purchasing market participant has established his/her/its business.

Transactions with counterparties established in Italy will be invoiced by GME to Italian market participants, or by the latter to GME:

1) without VAT, if the transaction refers to CICs issued for biomethane. In this case, the purchaser will apply the reverse charge mechanism;

2) with VAT at the standard rate, if the transaction refers to CICs issued for biofuels other than biomethane.

The list with the types of tradeable CICs and the related VAT scheme is reported here.

No VAT will be applied on sales to EU market participants who/which are taxable persons in their own countries. In this case, the reverse charge will be applied by the customer (market participant).

No VAT will be applied on sales non-EU market participants.

For purchases from both EU and non-EU market participants, GME will receive an invoice without VAT and then pay VAT in Italy under the reverse charge mechanism.

The list with the VAT codes (and their description) that GME uses in issuing invoices for payables/receivables and fees is reported here.

The services rendered by GME qualify as supply of services and the chargeability of VAT on the related fees depends on the place where the customer (market participant) has established his/her/its business.

Therefore, GME will issue an invoice with VAT at the standard rate, if the customer has established his/her/its business in Italy; if the Italian customer states that he/she/it is an esportatore abituale (exporter on a permanent basis) by submitting the related statement of intent to GME, then GME will issue an invoice without VAT.

Conversely, GME will issue an invoice without VAT to EU customers who/which are taxable persons in their own countries. In this case, the customer will apply the reverse charge.

GME will issue an invoice without VAT.to non-EU market participants.

Market participants established in Italy who/which are subject to the split payment system are required to submit to GME an appropriate self-certification, issued in compliance with art. 17ter of Decree of the President of the Republic 633/1972.

An example of self-certification of a market participant subject to the split payment system is reported here.