Italian government cancels 2018 VAT rise

31 October 2017

The Italian government recently presented its 2018 draft budget, which excludes the promised standard and reduced VAT rate increases to 25% and 11.5% respectively.

At the beginning of the year, the Italian government announced that if they did not meet certain budgetary targets during 2017, then they would increase the VAT rates to cover the shortfall. However, even though it seems that the budget requirements have not been met the VAT rates will remain at 22% for the standard rate and 10% for the reduced rate.