VAT in Italy: Rates, Rules & How to Calculate IVA
Italy applies four VAT (IVA) rates. The standard rate is 22%, one of the highest in the EU, applicable to most goods and services. The reduced rate of 10% covers restaurant services, hotel accommodation, certain food products, renovation works, and some energy supplies. A further reduced rate of 5% applies to specific items including certain herbs, spices, and social cooperative services. The super-reduced rate of 4% covers essential goods such as bread, milk, butter, fresh fruit, fresh vegetables, olive oil, books, newspapers, and first-home purchases.
The Agenzia delle Entrate administers Italian VAT. Businesses must register from their first taxable transaction using the Partita IVA system. VAT returns are filed quarterly for smaller businesses or monthly for larger ones. Italy's electronic invoicing system (fattura elettronica) has been mandatory since 2019 for most domestic B2B and B2C transactions, making it one of the most digitized VAT systems in Europe.
Use our calculator to compute Italian IVA instantly. For invoice preparation, try our invoice calculator or use our percentage calculator for general computations.