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Generic Tax Name VAT
Tax name in the national language Imposta sul valore aggiunto
Tax name in English Value-added tax
Member State IT-Italy
Tax in force since 1973/01/01
If abolished, date on which the tax ceases to apply
Business version date 2015/01/01
Version date 2015/02/17
This file was last updated on

Type of tax
Direct taxes Personal income tax
Corporate income tax
Other
Indirect taxes VAT
Excise duty (EU harmonised)
Alcoholic beverages
Energy products and electricity
Manufactured tobacco
Other
Social security contribution Employers
Employees
Other
 
Legal base

Directive 2006/112/CE of 2006/11/28; Presidential Decree no. 633 dated 26 October 1972.
 
Who sets
The tax rate is set by



The tax base is set by



The reliefs are set by




Comments
 
Beneficiary





Comments

 
Geographical Scope
Territories excluded (article 6 2006/112/EC)

Municipalities of Livigno and Campione d’Italia, Italian waters of Lake Lugano.

Comments
 
Taxpayers
Included taxable persons doing occasional transactions (article 12 2006/112/EC)


Comments
Special scheme for SMEs (article 281 2006/112/EC and following) None
Exemption
Graduated relief
Turnover threshold: 30,000.00  EUR/Natcur
Comments

Natural persons starting a business activity, crafts or professions may opt for a tax regime under which Value Added Tax is not charged on compensation and they are not entitled to any VAT deduction on purchases.

This regime may be applied to the tax period during which the business activity is started and during the subsequent four years. It may be even applied after the first four years but only until the natural persons are 35 years old.

The said regime applies if the following conditions occurred during the previous calendar year:

  • the taxpayer’s turnover has not exceeded the amount of € 30,000.00;
  • the taxpayer has not carried out supplies not subject to VAT;
  • the taxpayer has not incurred expenses for employees or partners;

The above regime does not apply to taxpayers who purchased capital goods up to an amount exceeding € 15,000.00 during the preceding three calendar years.

New  regime introduced for individuals who operate a business, art or profession in individual form.

(art. 1 par. from 54 to 89 L. 23.12.2914 n. 190)

The law of Stability introduced a new  regime aimed for individuals who operate a business, art or profession in individual form and have revenues not exceeding a certain limit depending on the ATECO code that distinguishes the exercised activities. (from 15,000 to 40,000 EUR).
Common Flat-rate scheme for farmers (article 295 2006/112/EC and following) None
All categories
Some categories
Flat rate compensation percentage (general):
Flat rate compensation percentage for forestry:
2.00 %
Flat rate compensation percentage for fisheries:
4.00 %
Comments

Comments

The following further compensation percentages are fixed for other product groups, as follows:

  • 4 percent: dairy milk packaged for retail; butter; cheese and dairy products; bulbs; tubers; flowers; vegetables; legumes; fruit; spices; cereals; oleaginous fruit; seeds; sugar beets; carobs; straw; fodder; wicker, reed; sorghum; algae; olive oil; grape musts; cider; wine vinegar; tobacco; flax; raw ramie; cotton; hemp;
  • 7 percent: live bovine animals.
  • 7.3 percent: live horses, asses, mules and hinnies; live swine, sheep and goats; rabbits, hares, ptarmigans, pheasants and other live animals for human nutrition; bees and silkworms.
  • 8.3 percent: meats, with the exception of poultry meat.
  • 8.5 percent: poultry meat.
  • 8.8 percent: dairy milk not put up for retail sale; eggs; honey; beeswax; silkworm cocoons; wool.
  • 12.3 percent: wines, with the exception of fortified wines.
There is a special scheme on the following





Comments
Special derogations to continue to tax (annex X)




Comments
Special derogations to continue to exempt (annex X)













Comments

* Exempted: 1) supply of urban passenger transport operated by taxi or by sea, lake, river and lagoon transport; 2) supply of transport intended for persons which is performed partly in Italy and partly abroad under a unique transport arrangement

Comments
 
Tax object and basis of assessment
The following items are regarded as supply of goods and hence taxed under VAT (article 14 - 15 2006/112/EC)




Comments
The following items are regarded as supply of goods and hence taxed under VAT (article 18 2006/112/EC)



Comments
By derogation to article 26 paragraph 1, the following item(s) are not regarded as supply of services and hence not subject to VAT (article 26(2) 2006/112/EC)


Comments
By application of article 27 of 2006/112/EC, the following item is treated as supply of services The supply by a taxable person of a service for the purposes of his business, where the VAT on such a service, were it applied by another taxable person, would not be wholly deductible
Comments

Comments
 
Deductions, Allowances, Credits, Exemptions
Exempted sectors*

Credit and financing transactions, insurance transactions, transactions concerning foreign currency, transactions in shares and bonds, some operations of leasing and letting of immovable property, agency, mediation and intermediary services, supplies of gold; supplies without charge to public bodies and associations, urban public passenger transport services supplied by cabs, transport services provided by ambulances, services relating to the postal services; hospitalisation and treatment by hospitals and authorised clinics; educational services; services provided by libraries, record libraries and museums; welfare and assistance services for employees; and social medical services.

 
Special Measures derogating from the normal VAT rules in accordance with Article 395 of Directive 2006/112/EC*

Council Decision 2007/441/EC: the deduction of taxes on the purchase of motorized road vehicles and on their relating components and spare parts is limited to a rate of 40% in case the said vehicles are not wholly used for business purposes. It is assumed the exclusive use of vehicles intended for the purposes of business activity or used by trade agents and sales representative

Comments

Deductions:

Taxes paid by the taxpayer or taxes debited to his account in respect of goods and services imported or purchased for the purposes of his undertaking, trade or profession.

 

Exemptions:

 Credit and financing transactions, insurance transactions, transactions concerning foreign currency, transactions in shares and bonds, some operations of leasing and letting of immovable property, agency, mediation and intermediary services, supplies of gold; supplies without charge to public bodies and associations, urban public passenger transport services supplied by cabs, transport services provided by ambulances, services relating to the postal services; hospitalisation and treatment by hospitals and authorised clinics; educational services; services provided by libraries, record libraries and museums; welfare and assistance services for employees; and social medical services.

 
 
Rate(s) Structure
Standard VAT rate Rate: 22.00 %
Comments
Reduced rate 1

(article 98 of Directive - Annex III of Directive) 		Rate: 10.00 % on full or part of the following items

Article 98(2) 2006/112/EC

Foodstuffs (including beverages but excluding alcoholic beverages) for human and animal consumption; live animals, seeds, plants and ingredients normally intended for use in the preparation of foodstuffs; products normally used to supplement foodstuffs or as a substitute for foodstuffs
Supply of water
Pharmaceutical products of a kind normally used for health care, prevention of illness and as treatment for medical and veterinary purposes, including products used for contraception and sanitary protection
Medical equipment, aids and other appliances normally intended to alleviate or treat disability, for the exclusive personal use of the disabled, including the repair of such goods, and supply of children's car seats
Transport of passengers and their accompanying luggage
Supply, including on loan by libraries, of books on all physical means of support (including brochures, leaflets and similar printed matter, children's picture, drawing or colouring books, music printed or in manuscript form, maps and hydrographic or similar charts), newspapers and periodicals, other than material wholly or predominantly devoted to advertising
Admission to shows, theatres, circuses, fairs, amusement parks, concerts, museums, zoos, cinemas, exhibitions and similar cultural events and facilities
Reception of radio and television broadcasting services
Supply of services by writers, composers and performing artists, or of the royalties due to them
Provision, construction, renovation and alteration of housing, as part of a social policy
The renovation and repair of private dwellings, excluding materials which account for a significant part of the value of the service supplied
Window cleaning and cleaning in private households
Supply of goods and services of a kind normally intended for use in agricultural production but excluding capital goods such as machinery or buildings
Accommodation provided in hotels and similar establishments, including the provision of holiday accommodation and the letting of places on camping or caravan sites
Restaurant and catering services, it being possible to exclude the supply of (alcoholic and/or non-alcoholic) beverages
Admission to sporting events
Use of sporting facilities
Supply of goods and services by organisations recognised as being devoted to social wellbeing by Member States and engaged in welfare or social security work, in so far as those transactions are not exempt pursuant to Articles 132, 135 and 136
Supply of services by undertakers and cremation services, and the supply of goods related thereto
Provision of medical and dental care and thermal treatment in so far as those services are not exempt pursuant to points (b) to (e) of Article 132(1)
Supply of services provided in connection with street cleaning, refuse collection and waste treatment, other than the supply of such services by bodies referred to in Article 13
Minor repairs of bicycles
Minor repairs of shoes and leather goods
Minor repairs of clothing and household linen (including mending and alteration)
Domestic care services such as home help and care of the young, elderly, sick or disabled
Hairdressing

Article 102 2006/112/EC

Supply of natural gas
Supply of electricity
Supply of district heating

Article 103(1) 2006/112/EC

Pictures, collages and similar decorative plaques, paintings and drawings, executed entirely by hand by the artist, other than plans and drawings for architectural, engineering, industrial, commercial, topographical or similar purposes, hand-decorated manufactured articles, theatrical scenery, studio back cloths or the like of painted canvas (CN code 9701)
Original engravings, prints and lithographs, being impressions produced in the limited numbers directly in black and white or in colour of one or of several plates executed entirely by hand by the artist, irrespective of the process or of the material employed, but not including any mechanical or photomechanical process (CN code 9702 00 00)
Original sculptures and statuary, in any material, provided that they are executed entirely by the artists.
Sculpture casts the production of which is limited to eight copies and supervised by the artist or his successors in title (CN code 9703 00 00); on an exceptional basis, in cases determined by the Member States, the limit of eight copies may be exceeded for statuary casts produced before 1 January 1989
Tapestries (CN code 5805 00 00) and wall textiles (CN code 6304 00 00) made by hand from original designs provided by artists, provided that there are not more than eight copies of each
Individual pieces of ceramics executed entirely by the artist and signed by him
Enamels on copper, executed entirely by hand, limited to eight numbered copies bearing the signature of the artist or the studio, excluding articles of jewellery and goldsmith's and silversmith's wares
Photographs taken by the artist, printed by him or under his supervision, signed and numbered and limited to 30 copies, all sizes and mounts included
Postage or revenue stamps, postmarks, first-day covers, pre-stamped stationery and the like, used, or if unused not current and not intended to be current (CN code 9704 00 00)
Collections and collector's pieces of zoological, botanical, mineralogical, ethnographic or numismatic interest (CN code 9705 00 00)
Goods, other than works of art or collector's items, which are more than 100 years old (CN code 9706 00 00)
Comments

* Admissions to museums, zoos and shows of cultural nature are exempted.

** A 10% rate applies to sports events’ tickets amounting up to € 12.91

*** A 10% rate applies to Marina Resort until 31 December 2015 (art. 32 par. 1 D.L. n. 133/2014 converted into L. 164/2014 - art. 1 par. 237-  L. 190/2014).

 
Reduced rate 2

(article 98 of Directive - Annex III of Directive) 		Rate: 4.00 % on full or part of the following items

Article 98(2) 2006/112/EC

Foodstuffs (including beverages but excluding alcoholic beverages) for human and animal consumption; live animals, seeds, plants and ingredients normally intended for use in the preparation of foodstuffs; products normally used to supplement foodstuffs or as a substitute for foodstuffs
Supply of water
Pharmaceutical products of a kind normally used for health care, prevention of illness and as treatment for medical and veterinary purposes, including products used for contraception and sanitary protection
Medical equipment, aids and other appliances normally intended to alleviate or treat disability, for the exclusive personal use of the disabled, including the repair of such goods, and supply of children's car seats
Transport of passengers and their accompanying luggage
Supply, including on loan by libraries, of books on all physical means of support (including brochures, leaflets and similar printed matter, children's picture, drawing or colouring books, music printed or in manuscript form, maps and hydrographic or similar charts), newspapers and periodicals, other than material wholly or predominantly devoted to advertising
Admission to shows, theatres, circuses, fairs, amusement parks, concerts, museums, zoos, cinemas, exhibitions and similar cultural events and facilities
Reception of radio and television broadcasting services
Supply of services by writers, composers and performing artists, or of the royalties due to them
Provision, construction, renovation and alteration of housing, as part of a social policy
The renovation and repair of private dwellings, excluding materials which account for a significant part of the value of the service supplied
Window cleaning and cleaning in private households
Supply of goods and services of a kind normally intended for use in agricultural production but excluding capital goods such as machinery or buildings
Accommodation provided in hotels and similar establishments, including the provision of holiday accommodation and the letting of places on camping or caravan sites
Restaurant and catering services, it being possible to exclude the supply of (alcoholic and/or non-alcoholic) beverages
Admission to sporting events
Use of sporting facilities
Supply of goods and services by organisations recognised as being devoted to social wellbeing by Member States and engaged in welfare or social security work, in so far as those transactions are not exempt pursuant to Articles 132, 135 and 136
Supply of services by undertakers and cremation services, and the supply of goods related thereto
Provision of medical and dental care and thermal treatment in so far as those services are not exempt pursuant to points (b) to (e) of Article 132(1)
Supply of services provided in connection with street cleaning, refuse collection and waste treatment, other than the supply of such services by bodies referred to in Article 13
Minor repairs of bicycles
Minor repairs of shoes and leather goods
Minor repairs of clothing and household linen (including mending and alteration)
Domestic care services such as home help and care of the young, elderly, sick or disabled
Hairdressing

Article 102 2006/112/EC

Supply of natural gas
Supply of electricity
Supply of district heating

Article 103(1) 2006/112/EC

Pictures, collages and similar decorative plaques, paintings and drawings, executed entirely by hand by the artist, other than plans and drawings for architectural, engineering, industrial, commercial, topographical or similar purposes, hand-decorated manufactured articles, theatrical scenery, studio back cloths or the like of painted canvas (CN code 9701)
Original engravings, prints and lithographs, being impressions produced in the limited numbers directly in black and white or in colour of one or of several plates executed entirely by hand by the artist, irrespective of the process or of the material employed, but not including any mechanical or photomechanical process (CN code 9702 00 00)
Original sculptures and statuary, in any material, provided that they are executed entirely by the artists.
Sculpture casts the production of which is limited to eight copies and supervised by the artist or his successors in title (CN code 9703 00 00); on an exceptional basis, in cases determined by the Member States, the limit of eight copies may be exceeded for statuary casts produced before 1 January 1989
Tapestries (CN code 5805 00 00) and wall textiles (CN code 6304 00 00) made by hand from original designs provided by artists, provided that there are not more than eight copies of each
Individual pieces of ceramics executed entirely by the artist and signed by him
Enamels on copper, executed entirely by hand, limited to eight numbered copies bearing the signature of the artist or the studio, excluding articles of jewellery and goldsmith's and silversmith's wares
Photographs taken by the artist, printed by him or under his supervision, signed and numbered and limited to 30 copies, all sizes and mounts included
Postage or revenue stamps, postmarks, first-day covers, pre-stamped stationery and the like, used, or if unused not current and not intended to be current (CN code 9704 00 00)
Collections and collector's pieces of zoological, botanical, mineralogical, ethnographic or numismatic interest (CN code 9705 00 00)
Goods, other than works of art or collector's items, which are more than 100 years old (CN code 9706 00 00)
Comments
Special reduced VAT rate for specific regions (including articles 104 and 105 2006/112/EC) Rate:
Regions
Comments
Special provisions under article 110 2006/112/EC (existing provisions prior to 1991):No
Special provisions under articles 111 2006/112/EC:No
Special provisions under articles 112 2006/112/EC:No
Special provisions under articles 113 2006/112/EC:No
Special provisions under articles 114 2006/112/EC:No
Special provisions under articles 115 2006/112/EC:No
Special provisions under articles 116 2006/112/EC:No
Special provisions under articles 117 2006/112/EC:No
Special provisions under articles 118 2006/112/EC:No
Special provisions under articles 119 2006/112/EC:No
Special provisions under articles 120 2006/112/EC:No
Special provisions under articles 121 2006/112/EC:No
Special provisions under articles 122 2006/112/EC:Yes

In Italy some goods listed in the article are subject to reduced rate.

 

The following product groups are subject to a super-reduced rate of 4%: 

  • dairy milk packaged for retail; butter; cheese and dairy products;
  • vegetables; legumes; fruit; cereals; olive oil; margarine;
  • bread and bakery products;
  • tinned peeled tomatoes and tomato sauces; olives in brine;
  • non luxury houses; rural buildings; goods supplied for the construction of the same buildings; supply of services under contracting agreement relating to the construction of the same buildings;
  • surgical appliances; denture, ophthalmologic devices and other; hearing aids; gas intended for therapeutic use; artificial kidneys; prosthesis and aid relating to permanent functional handicap;
  • subscriptions to public broadcasting.

Comments

e book 4% (art. 1 par. 667 L. 190/2014)
 
Tax due date

Due date applies as follows: 

  • taxpayers applying monthly settlement: payment of VAT due on 16 of each month;
  • taxpayers applying quarterly settlement option: payment of VAT due with respect to the first three quarters on May 16, on  August 16 and on  November 16;

payment of tax balance – as from annual VAT declaration is due on March 16.
 
Tax collector

Revenue Agency.
 
Special features

Declaration:

Annual VAT declaration shall be submitted compulsorily via electronic data transmission between February 1 and September 30.

Annual VAT data shall be communicated not later than the end of February.

Taxpayers submitting VAT declaration within the end of February shall not be obliged to submit annual VAT data.

Reverse charge:

It applies to: 

  • supply of services, including labour force, rendered in construction industry by sub-contractors to companies involved in construction or renovation of housing, or to main contractors or another sub-contractor;
  • supply of buildings or portions of  buildings having a function within the enterprise with respect to which the seller expressly opted for taxation;
  • supply of back-end devices intended for land public broadcasting service for communication as well as their components and accessories;
  • supply of computers and their components and accessories;
  • supply of ferrous and non-ferrous waste as well as scrap and waste;
  • supply of used and recyclable material consisting of paper, rags, bone, leather, glass, rubber and plastic.

 

Reverse charge (extended by L. 190/2014 - art. 1 par. 629)

 

To the services already provided add cleaning services, demolition, equipment installation and buildings completion, energy sector, in particular, in the case of transfers of certificates relating to gas and electricity, supply of gas and electricity to taxable dealers, the large distribution, in particular transfer of good to the hypermarkets, supermarkets and discount food.

The scrap industry of the reverse extended to wooden pallets

 

Electronic invoice to the Public Administration

The L. 244/2007 (Art. 1 co. 209-214  as amended by art. 10 par.13 duodecies lett. a) D. L.  201/2011 converted  by L. 214/2011) introduced the the mandatory electronic invoice to the Public Administration.

The D.L. 66/2014 converted into L. 89/2014 brought forward to March 31, 2015 the obligation of electronic invoice to the Public Administration.

Split payment

System through which public authorities, upon payment of invoices received in connection with their purchases of goods and services  do not pay more to suppliers, the total amount of the invoices, but only the tax base,  withholding VAT and paying it directly to the Treasury.

 

 

 
 
Economic function







Comments
 
Environmental taxes



Comments
 
Tax revenue
ESA95 code d211

Year
Annual tax revenue (millions)
Currency
Tax revenue as % of GDP
Tax revenue as % of total tax revenue
2012 95,473.00 EUR 5.91
2011 98,456.00 EUR 6.01
2010 96,834.00 EUR 6.03
2009 86,280.00 EUR 5.48
2008 93,698.00 EUR 5.74
2007 95,623.00 EUR 5.94
2006 92,992.00 EUR 6.00
2005 85,317.00 EUR 5.72
2004 81,515.00 EUR 5.63
2003 79,099.00 EUR 5.68
2002 80,382.00 EUR 5.97
2001 78,056.00 EUR 6.01
2000 77,473.00 EUR 6.25

Comments