Italian VAT rates: 22%, 10%, 5% and 4%
Italian VAT has one standard rate and three reduced ones. Knowing which applies to a product is a matter of tables, not arithmetic.
TL;DR
Italian VAT (IVA) has four rates: standard 22%, reduced 10%, reduced 5% and minimum 4%. They are set by article 16 and Table A of Presidential Decree 633/1972 and apply across the whole country. Livigno and Campione d'Italia are outside the scope of the tax.
One standard rate and three reduced ones
VAT (in Italian, IVA) is a tax on value added that the final consumer pays inside the price. The rate depends on what is bought, and the rule is written in Presidential Decree 633/1972: article 16 sets the standard rate at 22% and refers to Table A for everything with a reduced rate.
| Rate | Name | Where it is written | Typical examples |
|---|---|---|---|
| 22% | standard (ordinaria) | art. 16, para. 1 | clothing, electronics, cars, most professional services |
| 10% | reduced (ridotta) | Table A, part III | restaurants and hotels, many foods (meat, fish, eggs, rice), medicines, passenger transport, home renovation works, household energy |
| 5% | reduced (ridotta) | Table A, part II-bis | some food products, social-care and educational services of social cooperatives |
| 4% | minimum (minima) | Table A, part II | bread, milk, flour, fresh vegetables and fruit, books and newspapers, aids for people with disabilities, first homes |
The full list is long and changes with budget laws: the examples above are the stable ones, not an exhaustive catalogue. When a product appears in no part of Table A, the rate is the standard one.
How to read Table A
Table A does not reason by broad category but by item: "fresh milk" and "long-life milk" can sit in different parts, and the same goes for products that look like twins. That is why businesses ask the Agenzia delle Entrate for rulings when a new product has no clear entry.
For a private reader the practical rule is: if the receipt shows a rate, that is the rate. If you have to do the sum yourself, for a quote marked "IVA esclusa" for instance, start from the Table A entry describing the good or service and, when in doubt, ask the supplier which rate they apply.
Where VAT does not apply
Three situations are often mistaken for "a low rate" but are something else.
- Excluded territories. Livigno, Campione d'Italia and the Italian waters of Lake Lugano are outside the territory of the tax (article 7). VAT does not exist there: it is not 4%, it is not 0%, it simply does not apply.
- Exempt operations (article 10). Many health, financial, insurance and education services carry no VAT. The seller does not charge it and, as a rule, cannot deduct the VAT on related purchases.
- Non-taxable operations. Exports, for instance: outside the tax by the legislator's choice, with their own rules.
In none of these cases is there a rate to apply: the amount stays as it is.
The flat-rate regime charges no VAT
Self-employed people under the flat-rate regime (regime forfettario) do not charge VAT on their invoices and do not deduct it on purchases. The rates still concern them as customers: when they buy from a supplier under the ordinary regime they pay VAT like anyone else, and Table A says how much.
From the rates to the calculation
Once the rate is known, the sum is a percentage: net × rate ÷ 100 to add VAT, total ÷ (1 + rate) to remove it. The Italian VAT calculator does both with the four rates, and the guide how to calculate Italian VAT explains why removing VAT means dividing, not subtracting.
Common mistakes
Assuming VAT varies by region
The rates are national. What varies is the list of territories outside the tax (Livigno, Campione d'Italia), not the percentages.
Applying 4% to everything edible
Only some staple foods are at 4%; many are at 10% and some at 22%. The classification in Table A decides.
Confusing exemption with a zero rate
An exempt operation (article 10) has no rate and gives no right to deduct; it is not VAT at 0%.
Frequently asked questions
What are the VAT rates in Italy?
When does the 10% rate apply?
What has 4% VAT in Italy?
Is VAT the same everywhere in Italy?
Related reading & calculators
Sources
Author / Reviewed by
Author
Thorben Rasmus Idel
Co-founder & writer
Co-founder of Calculadora Capital and the writer behind the methodology on every calculator and article. An entrepreneur and active investor, Thorben founded Idel Versandhandel GmbH, an international trading company operating across 16 countries, and invests across stocks, ETFs and cryptocurrency. He writes the methodology and verifies the math behind each page, drawing on hands-on business and investing experience to keep the tools and explanations grounded in how money, markets and taxes actually work for everyday people in Italy.
Reviewed by
Nahar Geva
Co-founder & reviewer
Co-founder of Calculadora Capital and the independent reviewer behind every calculator and article. An entrepreneur and active investor, Nahar brings a data- and product-driven mindset together with hands-on experience in the markets, investing across stocks and ETFs as well as cryptocurrency and other digital assets, alongside broader personal finance and real estate. On each page Nahar reviews the methodology and double-checks the math and figures, pressure-testing how the tools and explanations hold up against the way money, markets and taxes actually work for everyday investors.
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