Consumption/VAT/Sales Tax in Italy

Overview by
Nature of the Tax
IVA (Imposta sul Valore Aggiunto)
Standard Rate
Reduced Tax Rate
There are reduced rates of VAT of 4% and 10% on basic products.
A rate of 10% is applied to some foodstuffs, live animals, some fuel supplies, catering, transport and housing.
A rate of 4% is applied to some foodstuffs, imports of agricultural products, medical supplies, books and magazines.
Exclusion From Taxation
In Resolution No. 75/E, the Revenue Agency has provided clarification of the VAT exemptions applicable to supplies of services intended to realise any of the productive processes concerned in management of a common investment fund. Indeed, Financial, insurance and medical services are exempt from VAT. Exports are not subject to VAT.
Method of Calculation, Declaration and Settlement
IVA is charged on assets and services in Italy as well as on imports into Italy. Registration is necessary. Every year, the Italians have to make their "dichiarazione dei redditi" (income declaration) for the previous year based on their estate and their revenue. The document must be sent in by May 31 at the latest.
Other Consumption Taxes
Other taxes are determined at the national or local level such as taxes on tobacco, petrol, alcohol, oil, etc.

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Experts Views (1)
  • EU VAT Guide

    With 27 EU Member States, each with their own VAT legislation to consider, VAT can be a time consuming and confusing task for international business.

    Accordance on 24 Jan 2012 related to Consumption/VAT/Sales Tax in Italy

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  • Accordance

    International VAT Compliance,