Italy VAT rate – Italian VAT

VAT rate in Italy is at 22% Standard VAT rate. There is also a safeguard VAT rate which is valid from January 1st 2021.  What does the safeguard mean? This allows the government to increase the VAT rate in case it could not find sufficient reductions in spending and if certain budgets are not met.

Italian VAT (Imposta sul Valore Aggiunto) is a goods and services tax currently at 22% and it is applied on the supply of almost all types of goods and services, as well as imports from outside the European Union.

The average VAT rate between OECD (Organisation for Economic Co-operation and Development) members was at 19.2% on the 31st of  December 2020 so the Italian VAT rate is higher than the average rate.

The minimum VAT rate in Italy was at 12% when VAT was first introduced in 1973. Currently Italian VAT  is at its highest at 22%.

Italian reduced VAT rates are at 4%, 5% and 10%.

Reduced VAT rates in Italy. Where are they applied?

• The reduced Italian VAT of 10% applies to a wide variety of products such as pharmaceutical products, foodstuff, cultural events, transportation of passengers, certain events, firewood, water waste treatment and collection of waste and several other product categories.
• The reduced Italian VAT rate of 5% applies to some foodstuffs, some social services and certain transports.
• The super-reduced VAT rate of 4% applies to TV licenses, newspapers, periodicals, books.
• 0% rate is applicable on intra community and international transports.