Banca Ifis Logo

Transfer of VAT credits and the international market: the case of Manni Oil Società Agricola

The only innovative start-up as an agricultural company in the Rome Chamber of Commerce – Armando Manni, CEO of Manni Oil Società Agricola, when presenting his company, immediately hinted at its uniqueness on the Italian scene.

Agriculture, technology and scientific research are all closely related in our company’s activities, we have patents pending, and we have a particular line in the production of olive oil. Our oil is of the highest quality and caters mainly for Michelin 3-star chefs around the world, private customers, and high-profile distribution. With the exception of South America and Africa, we export our products all over the world including to the Gulf states.

We are also the owner of the only oil mill in the world based on the concept of circular economy. In the past, olive pomace was a waste product of oil processing used to create another oil of very poor quality which is less marketable; most producers nowadays give it to biogas plants, bearing the transport costs themselves. We, on the other hand, have taken out a patent and extract from pomace an anti-oxidant and anti-ageing powder that we sell on the international market and which is used to produce food for adults and children.

Our company has large capitalisations in the field of agricultural companies. We have a fully paid-up share capital of almost 3 million Euros and we are growing at a rate of +100-110% per year. Our shareholding structure is of mixed nationality. Three partners are in fact Italian and three partners are American.

How many years have you been a customer of Banca Ifis? And how has the bank assisted you with the management of VAT credits?

We have been a customer of Banca Ifis for more than 2 years and we transfer our VAT credits to you. Everything we buy has VAT at 22% while oil has VAT at 4%. Since our market is 98 per cent foreign, VAT is not applied, which is why we end up with several hundred thousand euros in VAT every year. Banca Ifis is our regular buyer and has been very efficient and precise in our regard. We enjoy very good relations and I can say it is the bank we work best with.

What are the plans for the future of Manni Oil società agricola SRL? 

We plan to increase our capital with new shareholders and new funds to grow further and reach the break-even point next year, despite all the crises we have faced in these years of expansion and not least the increase in logistics costs. For example, Japan now pays 40% more for our oil than before, with costs that are passed on to the end consumer.