Italy proposes to increase VAT rate if budgets are not met

28 February 2017

The Italian government has announced that if certain budgetary targets are not met within 2017 then there could be a number of potential VAT rate increases from 1st January 2018. These increases include:

• The reduced 10% VAT rate being increased by three percent (from 10% to 13%) from 1st January 2018
• The standard VAT rate being increased:
  • from 22% to 24% from 1st January 2018
  • from 24% to 25.9% from 1st January 2019

There will be no change to the 4% Super Reduced VAT rate.