Italy VAT rate rise confirmed for 2021, if budget not met

3 February 2020

The Italian government recently announced that if certain budgetary targets are not met within 2020, they will implement a number of potential VAT rate increases. These increases include:

• The reduced 10% VAT rate being increased by two percent (from 10% to 12%) from 1 January 2021; and
• The standard VAT rate being increased from 22% to 25% from 1 January 2021, rising to 26.5% from 1 January 2022.