VAT rate in Italy

As part of the European Union, Italy is naturally also “using” VAT to handle national and international sales. This article will briefly show what VAT actually is and which rates there are and what you should know about VAT in Italy. To give a better overview, all rates are displayed with the according product categories. Enjoy!

VAT in 2 sentences

The VAT is a broadly-based consumption tax which is assessed to the value that is added to goods and services. The Value Added Tax, that’s what VAT stand for, applies to nearly all goods and services that are bought and sold within the European Union.

VAT Italy: which one applies to which product

VAT rate Italy of 22% (Standard):

All taxable goods and services that are not listed in the following Italian VAT rates.

Value Added Tax rate in Italy of 10% (Reduced):

Some foodstuffs; water supplies; some pharmaceutical products; domestic passenger transport; admission to cultural events; some social housing; renovation and repair of private dwellings; some supplies and construction work for new buildings; some agricultural supplies; hotel accomodation; restaurants; admission to certain sports events; energy products (excluding district heating); firewood; collection of domestic waste; some waste water treatment; alcoholic beverages in bars and cafes; take away food; cut flowers and plants for decorative use and food production.

VAT-rate of 5% (Reduced):

Some foodstuffs; some social services.

4% (Reduced):

Some food products; certain medical equipment for disabled persons; certain books; newspapers and some periodicals; e-books with an international standard book number (ISBN) ; online journals newspapers; TV licence; some social housing; some agricultural supplies; certain social services; motor vehicles for the disabled; some supplies for new buildings; construction work on new buildings for first housing).

VAT rate in Italy – 0% (Zero):

Intra-community and international transport.