In Italy, Value Added Tax (IVA – Imposta sul Valore Aggiunto) applies to most goods and services. The standard rate is 22%, with reduced rates for specific categories to support essential goods, sectors like tourism, and social services.
| Current Italian VAT Rates (IVA) – as of December 2025 | ||
|---|---|---|
| Rate | Description / Main Applications | Common Examples |
| 22% (Standard) | Applies to most goods and services not eligible for reduced rates. | Electronics, clothing, household appliances, professional services, restaurant meals (general), cars. |
| 10% (Reduced) | Tourism, certain foods, construction/renovation works, energy supplies, some agricultural products. | Hotel accommodation, some restaurant services, electricity and gas for domestic use, building renovations, certain medicines. |
| 5% (Reduced) | Social and health services, certain foods, medical equipment; art, antiques and collectibles (since July 2025). | Social services, some foodstuffs, performances, sales and imports of art/antiques/collectibles. |
| 4% (Super-reduced) | Basic necessities, books, newspapers, e-books, certain foods and agricultural products. | Groceries (bread, milk, fruit/vegetables), books, newspapers, periodicals, medical aids for the disabled. |
| 0% (Zero-rated) | Certain exports, intra-EU supplies, international transport, some medical and educational services. | Exports outside the EU, some passenger transport services. |
Source: Agenzia delle Entrate (Italian Revenue Agency) – rates current as of December 2025
- Some transactions (e.g., healthcare, education, insurance, financial services) are exempt from VAT (no VAT charged, but no input VAT recovery).
- Exemptions (no VAT charged, but no input VAT recovery) apply to areas like healthcare, education, insurance, and financial services.
- Rates are set by law (DPR 633/1972 and updates) and administered by the Agenzia delle Entrate (Italian Revenue Agency).
- Recent changes: In 2025, a 5% rate was introduced for art/antiques (from July), and some temporary reductions (e.g., on pellets) reverted to higher rates.
Always verify specific classifications with official sources or a tax advisor, as exact application depends on detailed criteria.
For the most up-to-date official details, check the Agenzia delle Entrate website or contact us