In Italy, there are several legally regulated VAT rates. The type of delivery or
service is the only determining factor – not the person of the buyer or client.
The starting point is the standard VAT rate of 22%, which applies,
as a general rule, to all taxable transactions.
Reduced VAT rates apply only in exceptional cases expressly provided for by law
for social, health policy or economic reasons. These rates are regulated by the
Italian VAT Act (DPR 633/72, Table A) and are divided into 4%,
5% and 10%.
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10% – reduced tax rate
Applies to certain services, such as accommodation, catering, and selected
construction and renovation services.
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5% – significantly reduced tax rate
Applies to socially and health-related services, as well as to individual goods
that are precisely defined by law.
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4% – super-reduced tax rate
Applies to basic necessities and goods of particular social relevance, such as
food, books or the purchase of a “prima casa” under certain conditions.
Basic principle of VAT rates
The differentiation of VAT rates is based on tax policy considerations: reduced
rates apply to certain goods and services that are legally privileged – often due
to their social or societal relevance – while the regular VAT rate applies in all
other cases.
The current system has evolved over time and has been adjusted repeatedly to
reflect changing economic and political objectives.