In Italy, Value-Added Tax (VAT) is levied. This is a consumption tax levied on the sales of goods and services. In Italian, it is known as Imposta sul valora aggiunto (IVA).
The different VAT rates in Italy are:
| Rate | Type | Goods and services |
|---|---|---|
| 22% | Standard | All goods and services, except those excluded |
| 10% | Reduced | Certain foods and drinks, pharmaceutical products, passenger transport, hotel, restaurant, cultural events, social housing, construction, sports events, electric power,… |
| 5% | Reduced | Certain foods, social services, passenger transport,… |
| 4% | Reduced | Certain foods, medical equipment for disabled persons, books, newspapers, agricultural products,… |
| 0% | Zero | Certain passenger transport |
Some goods and services are exempt from VAT, such as education, insurance services and certain financial services. (Presidential Decree n. 633/72)