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)

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