Italy VAT Rate 2026: 22% Standard Rate

How Much Is VAT in Italy?

The standard VAT rate in Italy is 22% in 2026. Other rates: 10% — Restaurant and bar services, hotel accommodation, many foods, domestic electricity and gas, some medicines, building renovation works; 5% — Works of art, antiques and collectors' items (from July 2025), certain social and health services, some fresh herbs; 4% — Basic foods such as bread, milk, pasta, fruit and vegetables, books and e-books, newspapers, first-home purchases, aids for disabled people; 0% — Exports and intra-EU B2B supplies (non-imponibili). Locally the tax is called Imposta sul valore aggiunto (IVA). Among the 27 EU member states, standard VAT ranges from 17% in Luxembourg to 27% in Hungary.

How to calculate Italy VAT

To add 22% VAT to a net (tax-exclusive) price, multiply it by 1.22. To remove VAT from a gross (tax-inclusive) price, divide it by 1.22.

• Add VAT: EUR 100 net × 1.22 = EUR 122 gross (that is EUR 22 of VAT)
• Remove VAT: EUR 122 gross ÷ 1.22 = EUR 100 net (that is EUR 22 of VAT)

Use the Italy VAT calculator above for any amount, or compare Italy with every other country in our VAT rates by country table.

Current VAT Rates (2026)

Key VAT milestones

• 2025: 5% rate extended to sales and imports of works of art, antiques and collectors' items from 1 July
• 2019: Mandatory B2B and B2C e-invoicing through the Sistema di Interscambio (SdI)
• 2016: New 5% rate introduced for certain social and health services
• 2013: Standard rate raised from 21% to 22%
• 1973: IVA introduced

Is the VAT rate the same everywhere in Italy?

The same rates apply across Italy, but Livigno, Campione d'Italia and the Italian waters of Lake Lugano are outside the EU VAT area; San Marino and Vatican City have their own systems.

Good to know

Italy's regime forfettario is an income-tax flat-rate scheme: businesses in it do not charge IVA and cannot recover input IVA, but they must still issue e-invoices.

Crossing EUR 100,000 in the year ends the forfettario immediately; turnover between EUR 85,000 and EUR 100,000 means leaving it from the following year.

Zero-rated supplies (0%)

VAT is charged at 0%, but the seller can still recover input VAT on related costs:

• Exports of goods outside the EU
• Intra-EU B2B supplies of goods to VAT-registered customers
• International transport services

VAT-exempt supplies

No VAT is charged, and the seller generally cannot recover input VAT on related costs:

• Financial and insurance services
• Medical and healthcare services
• Education and vocational training
• Residential letting (in most cases)
• Postal universal service

Thresholds, deadlines and e-invoicing rules are revised regularly. Always confirm current requirements with Agenzia delle Entrate before relying on them.

Cross-border rules

Digital services and e-commerce: Foreign sellers of digital services to consumers in Italy charge Italy's VAT rate. EU businesses can declare it through the One-Stop Shop (OSS) once their EU-wide cross-border B2C sales exceed EUR 10,000; non-EU businesses use the non-Union OSS from the first sale.

Tourist VAT refunds: Non-EU visitors can reclaim IVA on purchases over EUR 70 per receipt.

For the general rules, see the reverse charge mechanism, VAT on digital services, VAT invoice requirements and VAT refunds for tourists and businesses.

Nearby Countries

What is the current VAT rate in Italy?

The standard VAT rate in Italy is 22% in 2026. Other rates in force: 10% (reduced rate), 5% (reduced rate), 4% (super-reduced rate), 0% (zero rate). See the rates table above for exactly what each rate covers.

How do I calculate VAT in Italy?

To add 22% VAT, multiply the net price by 1.22. To remove it from a VAT-inclusive price, divide by 1.22; the difference is the VAT. The calculator at the top of this page does both.

What is the IVA rate on food in Italy?

Basic foods such as bread, milk, pasta, fruit and vegetables are taxed at 4%, while many other foods and restaurant meals are taxed at 10%. Alcohol bought in shops is 22%.

Is e-invoicing mandatory in Italy?

Yes. Since 2019 domestic invoices must be issued electronically in XML through the Sistema di Interscambio (SdI), and since 2024 this includes businesses in the regime forfettario.

Does Italy have a VAT registration threshold?

No. Businesses must register before making taxable supplies, although individuals under the regime forfettario with turnover up to EUR 85,000 do not charge IVA.

Where these figures come from

• PwC Worldwide Tax Summaries - Italy other taxes
• Withers - Italy's 5% VAT rate on art sales and imports
• PwC TLS - Budget Law 2026 VAT provisions
• Agenzia delle Entrate