Italian VAT Rates
Updated Italian VAT rate tables
In Italy, there are three main VAT rates: a standard rate of 22%, a reduced rate of 10%, and a super-reduced rate of 4%. Nevertheless, there is also a 5% reduced VAT rate that is applicable to specific products and services, subject to certain conditions and requirements. However, this 5% reduced rate is not as frequently used in comparison to the 10% and 4% reduced rates.
In order to evaluate whether you should be charging a lower VAT rate than the standard 22%, have a look at our table below.
Italian VAT Rates
Standard VAT rate |
||||
| A standard VAT rate is the most applied VAT rate to goods and services in each country. This rate is applied to the majority of goods and services, with some exceptions, such as essential items or specific goods and services that may qualify for a reduced rate as outlined below. | ||||
Rate |
Good or Services |
|||
22% |
All Taxable goods and services not included in the reduced or zero rates | |||
Reduced VAT rates |
||||
| There are goods and services that may qualify for a lower value-added tax (VAT) rate presented below and are subject to change: | ||||
Rate |
Good or Services |
|||
10% |
Reduced rate |
|||
| Certain types of food, beverages, and supplies are sold in restaurants, bars, and hotels, as well as food sold for immediate consumption, take-away, or home delivery | ||||
| Public transportation services | ||||
| Domestic fuel and power | ||||
| Specific pharmaceutical products and medical devices | ||||
| Water | ||||
| Hotel accommodation, social housing | ||||
| Theatrical performances and related services provided by intermediaries | ||||
| Services provided by writers and composers | ||||
| Certain television and radio broadcast services | ||||
| Energy generated from renewable sources | ||||
| Athletic services | ||||
| Renovation and repair of homes, construction of new buildings, urbanization works, and certain supplies of new and affordable housing. | ||||
5% |
Reduced rate |
|||
Supplies of specific services meant for:
|
||||
| Basil, rosemary, sage oregano including live plants | ||||
| Urban transport maritime services (lakes, rivers, lagoons included) | ||||
4% |
Super Reduced rate |
|||
| Basic food items, such as bread, vegetables, fruit, and meat, among others. | ||||
| Books, newspapers, and electronic books (ebooks) intended for personal use or educational purposes. | ||||
| Certain types of main residences, such as newly built or refurbished homes | ||||
| Specific pharmaceutical products, such as medicines and medical treatments, are prescribed by a licensed healthcare professional. | ||||
| Food and drinks supplied by restaurants or vending machines, subject to certain conditions and requirements. | ||||
| Television and radio broadcasting services, including those provided by cable and satellite television providers. | ||||
| Certain types of medical equipment and devices, such as hearing aids and prosthetics. | ||||
| Construction work on a new house, including new buildings and major renovations, subject to specific conditions and requirements. | ||||
0% |
Zero rated products |
|||
| Exports of goods to destinations outside the EU | ||||
| Services related to international transportation, such as the leasing, hiring, maintenance, modification, repair, and chartering of ships and aircraft, which are considered equivalent to exports. | ||||
| Services linked to global transportation and additional services associated with international travel | ||||
| Tasks carried out on products intended for delivery outside of Italy | ||||
| Deals involving San Marino and Vatican City | ||||
| Supplies of specific products to embassies and consulates, as well as the delivery of goods and services to various internationally recognized organizations such as the United Nations, the European Union, and the European Central Bank | ||||
Supplies of goods transported from Italy to customers registered for VAT in another EU member state, where the transport is carried out by the supplier, purchaser, or third parties on their behalf. Thus, the following criteria must be met:
|
||||
Exempt From VAT |
||||
| Banks and other credit institutions provide credit transactions like loans and related services, which may include secured transactions and credit secured by warrants, among other types of security arrangements | ||||
| Management services provided by banks and credit institutions to mutual investment funds. | ||||
| Activities associated with foreign exchange and credit transactions carried out in a foreign currency, including bitcoin subject to specific conditions and requirements. | ||||
| Insurance services including damage and life insurance, reinsurance activities, and intermediary services | ||||
| Services related to intangible securities such as shares, bonds, and other financial instruments are generally exempt. Financial advisory services offered as part of a mediation, brokerage, and agency service are also exempt. | ||||
| Hospital services and certain related supplies, such as medical equipment, diagnostic tests, and medical treatment. | ||||
| Lotteries, betting, and gaming activities, including casino games and online gambling. | ||||
| Educational services, such as school and teaching services at all levels, training courses, and continuing education programs. | ||||
| Postal services, including mail delivery and related services. | ||||
| Transactions involving investment in gold, subject to certain conditions and requirements. | ||||
| Exempt supplies of immovable property, such as real estate, land, and buildings. | ||||
Last Updated: 07/09/2023
Disclaimer
The information provided by Global VAT Compliance B.V. on this webpage is intended for general informational purposes only. Global VAT Compliance B.V. is not responsible for the accuracy of the information on these pages, and cannot be held liable for claims or losses deriving from the use of this information. If you wish to receive VAT related information please contact our experts at support@gvc.tax
Selling in Italy?
We offer an end to end VAT Compliance package
Italian VAT Rates & Covid 19
In response to the economic challenges posed by COVID-19, many countries made temporary adjustments to their VAT rates. The most common changes were reduced VAT rates on goods and services from industries most affected by the pandemic, like the hospitality sector. For more details on the impact of COVID-19 in Italy, visit the news section of our website at: Clicking Here
