Indirect tax ebook - Italy

VAT Rates

In Italy, the following categories of VAT rates are applicable:

• Standard rate 20%:
  most of goods and services standard rated unless defined to be reduced rated or exempted.
• Reduced rate 10%:
  applying to food, hotel services and shops, drugs, etc.
• Reduced rate 4%:
  usually, applying to consumer staples, houses, fertilizers, company canteens, etc.
• Zero rated supplies:
  export sales and similar transactions, international services and intra-EU sales.
• Exempt supplies:
  VAT-exempt transactions generally comprise services delivery. Some of them (financial operations, bets) are VAT-exempt for practical reasons as they are not fit for VAT application. Some other refer to the supply of special public interest services (healthcare, school) so that exemption is suggested by the intention to lay down more favorable conditions for the end-user.

• Introduction
• Scope
• Registration
• Tax rates
• Reporting & filing
• General tax application/Time of supply