Further to the measures of Italy's Budget Law for 2021 previously reported, the Budget Law also provides VAT zero-rating for COVID-19 vaccines and testing. In particular, it is provided that the sale of authorized COVID-19 vaccines and the provision of directly related services are exempt from VAT with the right to deduct input tax (i.e., zero-rated). The same is also provided for the sale of diagnostic equipment for COVID-19 and the provision of directly related services. The zero-rating gen…