Italy VAT Rates 2026

Italy VAT Rates at a Glance

What is VAT Called in Italy?

In Italy, value added tax is officially known as Imposta sul Valore Aggiunto (IVA). It is administered by the Agenzia delle Entrate.

Like all EU member states, Italy operates VAT under the EU VAT Directive (2006/112/EC), which sets the framework for standard and reduced rates, exemptions, and the reverse charge mechanism across all 27 EU countries. The Agenzia delle Entrate is responsible for VAT registration, returns, enforcement, and issuing VAT rulings.

Reduced VAT Rate in Italy (10%)

Italy applies a reduced VAT rate of 10% to the following categories of goods and services (subject to the specific conditions of Italy VAT law):

• ✓Food and non-alcoholic beverages
• ✓Pharmaceutical products
• ✓Hotel accommodation
• ✓Restaurant meals
• ✓Agricultural products
• ✓Cultural events
• ✓Passenger transport
• ✓Renovation works on residential property

Additionally, Italy applies a super-reduced rate of 4% to:

• ✓Basic foodstuffs (bread, pasta, milk, eggs, vegetable oils)
• ✓Books and newspapers
• ✓Medical devices for disabled
• ✓Social housing
• ✓Agricultural machinery
• ✓School textbooks

Note: Reduced rate eligibility depends on the specific nature of the supply and how goods or services are classified under Italy VAT law. Always verify classification with a local VAT adviser before applying a reduced rate.

VAT Registration in Italy

Once registered, businesses are issued a Italy VAT number (IT + digits). This number must appear on all invoices and be verified on the EU VIES database before zero-rating intra-EU B2B supplies.

Non-EU businesses are generally required to register for Italy VAT with no registration threshold — the first taxable supply in Italy triggers an immediate registration obligation. Non-established businesses may need to appoint a local fiscal representative depending on the nature and location of their business.

Filing VAT Returns in Italy

VAT returns in Italy must be submitted electronically via the Agenzia delle Entrate portal. Most member states require payment of VAT due simultaneously with the return submission — check whether Italy requires separate payment instructions or if bank debit is automatic.

VAT Invoice Requirements in Italy

To be valid for VAT recovery purposes, Italy VAT invoices must include the following mandatory information (consistent with Article 226 of the EU VAT Directive, plus any additional national requirements):

1. 1Supplier codice fiscale and Partita IVA (IT + 11 digits)
2. 2Customer name, address and Partita IVA
3. 3Date and sequential invoice number (numero progressivo)
4. 4Description of goods/services (natura, qualità, quantità)
5. 5Unit price and discounts
6. 6IVA rate (aliquota) and amount
7. 7Total amount payable
8. 8XML format with SDI routing code (codice destinatario)

Simplified invoices (without all fields above) may be issued where the total amount does not exceed €100 excluding VAT, subject to Italy's national rules on simplified invoicing.

Reverse Charge Mechanism in Italy

Italy applies reverse charge (inversione contabile) to construction services, supplies of buildings, scrap metal, mobile phones and tablets (above threshold), and B2B services from abroad. Non-established businesses receiving Italian services must register and self-account.

Under the reverse charge, the recipient of the supply (rather than the supplier) is responsible for declaring and paying VAT. The recipient self-accounts for VAT on their Italy VAT return — declaring both output VAT (as if they had charged it) and input VAT (which they may recover subject to normal rules). The supplier issues an invoice without VAT with a note such as "Reverse charge — Article 196 EU VAT Directive."

EU OSS and Italy

Italian businesses register for EU OSS via the Agenzia delle Entrate portal. Italy's OSS registrations are high given the large e-commerce and fashion/luxury goods export sector.

Under the EU's One Stop Shop (OSS) scheme introduced in July 2021, businesses selling digital services or goods B2C to customers in Italy (and other EU countries) can register in a single EU member state and file a single quarterly return covering all EU consumer sales. OSS avoids the need to register for VAT separately in each of the 27 EU member states where you have customers. The Italy VAT due on your OSS return is paid in your registration country and forwarded to Italy's Agenzia delle Entrate.

Italy VAT: Background & History

Italy has one of the EU's most sophisticated e-invoicing systems. Since January 2019, B2B e-invoicing (fatturazione elettronica) has been mandatory for all Italian VAT-registered businesses — invoices must be issued in XML format through the government's Sistema di Interscambio (SdI) interchange system. Italy has the EU's highest VAT gap — the difference between expected and collected VAT revenue — which drove the e-invoicing mandate. The fatturazione elettronica system processes over 2 billion invoices per year.

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Frequently Asked Questions — Italy VAT

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