As a result of COVID-19, Italy will not increase the VAT/IVA rates as planned in 2021.
The Italian Council Ministers approved a decree which includes, among other measures, a reversal in their decision to increase VAT rates as of 1 January 2021. Initially planned for 2020, the increased VAT rates in Italy were as follows:
- An increase in the standard rates from 22% to 25% on 1 January, with a further increase to 26.5% planned for 1 January 2022.
- An increase in the reduced VAT rate from 10% to 12% from 1 January 2021.
This decision is based on measures taken to mitigate the effects of COVID-19 pandemic. As a result, VAT rates remain the same in Italy in 2021 and for the foreseeable future.
Source Credit – Accordance