The Italian government have decided to postpone any VAT rate increases until 1 January 2021. The VAT rate increase in Italy, which was initially reported in our story of June 2019 (here), was due to come into force from 1 January 2020.

The government postponed the following VAT rate increases:

  • The standard VAT rate will increase from 22% to 25% as of 1 January 2021. Then a further increase from 25% to 26.5% as of 1 January 2022.
  • The reduced VAT rate will increase from 10% to 12% as of 1 January 2021.

Please note that these VAT rate increases will only come into effect should the government not meet budgetary targets.

If you have any questions regarding the Italy VAT rate increase, get in touch with our VAT experts.

By |February 4th, 2020|