Italy VAT / Sales Tax

Detailed vat / sales tax rates and rules for Italy in 2026.

VAT / Sales TaxEUR

Italy applies a standard VAT (IVA - Imposta sul Valore Aggiunto) rate of 22%, with reduced rates of 10%, 5%, and a super-reduced rate of 4% for essential goods. Italy's VAT system follows EU directives. Electronic invoicing (fatturazione elettronica) is mandatory for all B2B and B2C transactions through the Sistema di Interscambio (SDI) platform.

Standard Rate

22%

Registration Threshold

No threshold for standard businesses; the flat-rate regime (regime forfettario) applies to professionals and sole proprietors with revenue up to €85,000

Reduced Rates

10% — Tourism services, restaurants, some food products, energy supplies, renovation works, pharmaceutical products5% — Certain food staples, social housing, medical devices4% — Basic food items (bread, milk, olive oil, fresh fruit and vegetables), first-home purchases, newspapers, books

How Italy VAT / Sales Tax compares

Italy’s standard VAT / sales tax rate of 22% is the 14th highest of 203 countries TaxAtlas tracks, above the global average of 13.7% and Europe’s regional average of 19.9%.