Italian Prime Minister Giuseppe Conte was present at the Rete Imprese Italia 2019 Assembly held at the Palazzo della Cancelleria in Rome. During his speech he admitted that avoiding the VAT rate increase as safeguard for the year 2020 and 2021 “won’t be easy”(1). At the same time he said that they are “conducting a profound spending review to put in order and boost the tax system to combat tax evasion”.

This measure looks to increase VAT rates from 22% to 24.2% in January 2020 with the goal of reducing the budget deficit. It was immediately criticized by the opposition and have created a lot of public debate.

Global VAT Compliance will keep you updated on this issue as it develops in the upcoming months.