Italy applies several VAT (IVA – Imposta sul Valore Aggiunto) rates depending on the type of goods or services being supplied.

Applying the correct VAT rate is essential to ensure your invoices, VAT returns and OSS reporting are accurate and compliant.

Current Italian VAT Rates

VAT Rate	Applies To (Examples)
22%	Standard rate – applies to most goods and services.
10%	Reduced rate – certain food products, hotel accommodation, restaurant and catering services, some medicines, passenger transport, cultural events and certain renovation works.
5%	Reduced rate – selected food products, certain social and healthcare services, district heating and other supplies specifically provided for under Italian VAT legislation.
4%	Super-reduced rate – essential goods including certain basic foodstuffs, books, newspapers, e-books, and specific medical products for people with disabilities.
0% / VAT Exempt	Certain exports, intra-Community supplies (subject to conditions), and exempt services such as healthcare, education, insurance and many financial services. (PwC Tax Summaries)

Standard VAT Rate – 22%

The 22% rate is the default VAT rate in Italy and applies unless a reduced rate or exemption is specifically provided by law.

Typical examples include:

Electronics
Clothing and footwear
Household goods
Professional services
Most business-to-business supplies
General retail sales

Reduced VAT Rate – 10%

The 10% reduced rate applies to a range of goods and services including:

Hotel accommodation
Restaurant and catering services
Certain food products
Some pharmaceutical products
Passenger transport
Admission to cultural events
Certain residential renovation works

Reduced VAT Rate – 5%

The 5% rate applies only to specific categories defined by Italian VAT legislation.

Examples include:

Certain food products
Selected social and healthcare services
Some public transport services
Other supplies specifically listed by law

Super-Reduced VAT Rate – 4%

The 4% rate is intended for essential goods and selected socially important products.

Examples include:

Certain basic foodstuffs
Printed books and qualifying e-books
Newspapers and magazines
Certain medical devices
Specific products for people with disabilities

VAT Exempt & Zero-Rated Supplies

Some transactions are not subject to Italian VAT or are exempt under Italian VAT legislation.

These may include:

Exports outside the European Union.
Intra-Community supplies (where the legal conditions are met).
Certain healthcare services.
Education services.
Insurance services.
Many financial services.
Certain property transactions. (PwC Tax Summaries)

Which VAT Rate Should I Apply?

The correct VAT rate depends on:

The goods or services being supplied.
Where the supply takes place.
Your customer's status.
Whether special VAT rules apply.

Using the incorrect VAT rate may result in:

Underpaid or overpaid VAT.
VAT return corrections.
Interest and administrative penalties.
Additional queries from the Italian Tax Authority.

If you are unsure which VAT rate applies to your business activities, please contact your hellotax Account Manager before issuing invoices.

Need Help?

Our VAT specialists can help you determine the correct Italian VAT treatment for your products and services and ensure your VAT returns remain fully compliant with Italian VAT legislation.

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VAT Rates in Italy