Italy VAT Calculator 2025 | 22%, 10%, 5%, 4% Rates

  • Adam
  • November 3, 2025

Free Italy VAT calculator (IVA). Calculate 22% standard, 10%, 5%, 4% reduced rates instantly. Add/remove tax with official Agenzia delle Entrate formulas. Updated 2025.

🇮🇹 Italy VAT Calculator

Calculate Imposta sul Valore Aggiunto (IVA) - Updated 2025

Standard: 22% | Reduced: 10%, 5%, 4%
VAT Rate: 22%
Base Amount (Ex VAT): €0.00
VAT Amount (IVA): €0.00
Total Amount (Inc VAT): €0.00

How to Calculate Italy VAT (IVA)

Italy's Value Added Tax (VAT), known locally as "Imposta sul Valore Aggiunto" (IVA), is a consumption tax applied to goods and services. Italy has a standard VAT rate of 22%, along with reduced rates of 10%, 5%, and 4% (super-reduced), plus a zero rate for certain supplies. VAT was introduced in Italy in 1973 and is administered by the Agenzia delle Entrate (Revenue Agency). Italy is a founding member of the European Union and its VAT system is harmonized with EU rules.

2025 Update: Italy maintains its standard 22% VAT rate with reduced rates at 10% (water, pharmaceuticals, hotels, restaurants), 5% (certain foodstuffs, social services), and 4% (food, books, medical equipment). The €85,000 registration threshold applies to most businesses. A 2026 VAT Code consolidation is planned.

Adding VAT to a Price

When you need to add VAT (IVA) to a VAT-exclusive price, use these formulas:

VAT Amount = Base Price × (VAT Rate ÷ 100)
Total Price (Inc VAT) = Base Price × (1 + VAT Rate ÷ 100)

Example for 22% standard rate: If the base price is €100 (excluding VAT):

VAT Amount = €100 × 0.22 = €22.00

Total Price = €100 + €22.00 = €122.00

Example for 4% super-reduced rate: If the base price is €100 (excluding VAT):

VAT Amount = €100 × 0.04 = €4.00

Total Price = €100 + €4.00 = €104.00

Removing VAT from a Price

When you need to calculate the VAT-exclusive price from a VAT-inclusive price, use these formulas:

Base Price (Ex VAT) = Total Price ÷ (1 + VAT Rate ÷ 100)
VAT Amount = Total Price - Base Price

Example for 22% standard rate: If the total price is €122 (including VAT):

Base Price = €122 ÷ 1.22 = €100.00

VAT Amount = €122 - €100 = €22.00

Helpful Tip: VAT at 22% means that approximately 18.03% of the VAT-inclusive price is the actual VAT component (because 22÷122 ≈ 0.1803).

Understanding Italy's VAT System

What is IVA (VAT) in Italy?

Imposta sul Valore Aggiunto (IVA) is Italy's value-added tax. It's a consumption tax collected at each stage of the supply chain with the final burden on consumers. Italy's VAT system is harmonized with EU VAT rules as a founding member of the European Union. Businesses can claim input tax credits for VAT paid on business-related purchases, preventing tax accumulation.

The Five Italian VAT Rates

Standard Rate (22%): Applies to most goods and services including electronics, clothing, motor vehicles, alcohol, tobacco, professional services, and most other goods and services not specifically listed under reduced rates.

Reduced Rate (10%): Applies to essential goods and services including:

  • Water supplies (domestic)
  • Pharmaceutical products and medicines
  • Baby products and infant supplies
  • Feminine hygiene products
  • Hotel accommodation and short-term lodging
  • Restaurant and catering services (including takeaway)
  • Passenger transport services
  • Admission to cultural and sports events

Reduced Rate (5%): Applies to specific items and services including:

  • Certain foodstuffs for human consumption
  • Social services and social welfare services
  • Healthcare services by welfare associations
  • Educational services by non-profit organizations

Super-Reduced Rate (4%): Applies to essential items including:

  • Basic foodstuffs (pasta, bread, bakery products)
  • Milk and dairy products
  • Meat and fish
  • Fresh fruits and vegetables
  • Books and publications (printed and e-books)
  • Newspapers, magazines, and periodicals
  • TV licenses
  • Medical equipment for disabled persons
  • Agricultural products (certain types)

Zero Rate (0%): Applies to specific supplies:

  • Intra-community supplies of goods to other EU member states
  • Export of goods from Italy
  • International passenger transport by air and sea
  • Passenger transport within Italy for specific services
  • Medical and dental care services
  • Social welfare services
  • Sale of gold to central banks

VAT Registration Requirements

Businesses in Italy must register for VAT if:

  • Annual turnover exceeds €85,000 - Standard registration threshold
  • €10,000 for pan-EU digital services - Lower threshold for digital commerce
  • Non-residents - Must appoint a fiscal representative and register
  • Importers - Any importer must register

Businesses below the threshold can voluntarily register for VAT to claim input tax credits.

VAT Filing and Compliance

VAT-registered businesses in Italy must file VAT returns based on their turnover:

  • Quarterly Communications: For businesses with sales not exceeding €700,000 (goods) or €400,000 (services)
  • Monthly Payments: VAT payments are due monthly
  • Annual VAT Return: Due before end of April of the following year
  • E-invoicing: All invoices must be submitted to the SdI (Sistema di Interscambio) electronic system
  • Penalties: Late filings or payments can result in fines up to 240% of VAT due plus interest

VAT-Exempt and Special Supplies

Important Distinction: Zero-rated supplies (0%) allow input tax credit claims, while exempt supplies do not, creating a real cost for exempt suppliers.

Exempt Supplies (No VAT, No Input Credit)

Some supplies are exempt from VAT, meaning businesses cannot claim input tax credits:

  • Healthcare Services: Medical and dental services by healthcare professionals
  • Education: Educational services by approved educational institutions
  • Financial Services: Banking, insurance, investment services (mostly)
  • Postal Services: Universal postal services
  • Property Transactions: Sale and lease of most real property
  • Sports and Betting: Certain sports activities and betting/gambling services
  • Social Welfare: Social welfare services and grants
  • Broadcasting: Broadcasting services (certain cases)

Items Subject to 22% Standard Rate

The following are subject to standard 22% VAT:

  • Electronics and appliances
  • Clothing and footwear
  • Motor vehicles and parts
  • Alcohol (wine, beer, spirits)
  • Tobacco products
  • Professional services
  • Most entertainment services
  • Haircuts and beauty treatments
  • Most household goods

Items Subject to Reduced Rates (4%, 5%, 10%)

The following are subject to reduced VAT rates:

  • 4% Super-Reduced: Basic food, books, newspapers, TV licenses, medical equipment
  • 5% Reduced: Certain food items, social services, healthcare by welfare
  • 10% Reduced: Water, medicines, baby products, hotels, restaurants, transport, events

Italy VAT Quick Reference

Aspect Details
Standard VAT Rate 22%
Reduced VAT Rates 10%, 5%, and 4% (super-reduced)
Zero VAT Rate 0% for exports and certain services
Local Name Imposta sul Valore Aggiunto (IVA)
Registration Threshold €85,000 annual turnover
Administering Authority Agenzia delle Entrate (Revenue Agency)
Filing Frequency Quarterly communications, annual return
Tax Type Value Added Tax (VAT)
EU Member Yes - Founding member, VAT harmonized
Introduction 1973 (over 50 years of VAT system)

Frequently Asked Questions (FAQ)

What is IVA (VAT) in Italy?
IVA (Imposta sul Valore Aggiunto) is Italy's value-added tax applied to goods and services. The standard rate is 22%, with reduced rates of 10%, 5%, and 4% (super-reduced) for specific items, and 0% for exports and certain services. VAT is ultimately borne by the final consumer and collected at each stage of the supply chain.
What is the standard VAT rate in Italy?
The standard VAT rate in Italy is 22%. This rate applies to most goods and services, including electronics, clothing, motor vehicles, alcohol, tobacco, and professional services. Reduced rates of 10%, 5%, and 4% apply to essential items and services.
How do I calculate Italy VAT?
To add VAT: multiply the base price by 1.22 (for 22%), 1.10 (for 10%), 1.05 (for 5%), or 1.04 (for 4%). To remove VAT: divide the total price by the corresponding multiplier. For example, €100 with 22% VAT becomes €122; to reverse: €122 ÷ 1.22 = €100.
Who needs to register for VAT in Italy?
Businesses must register for VAT if their annual turnover exceeds €85,000. Non-residents must register regardless of turnover and must appoint a fiscal representative. Importers and businesses engaged in specific activities must also register. Businesses below the threshold can voluntarily register.
What items are subject to the 4% super-reduced rate?
The 4% super-reduced rate applies to basic foodstuffs (bread, pasta, milk, meat, fish, vegetables, fruit), books (printed and e-books), newspapers, magazines, TV licenses, and medical equipment for disabled persons.
What items are subject to the 10% reduced rate?
The 10% rate applies to water supplies, pharmaceutical products and medicines, baby products, feminine hygiene products, hotel accommodation, restaurant and catering services, passenger transport, and admission to cultural/sports events.
Are restaurants and hotels subject to VAT in Italy?
Yes, restaurant and catering services are subject to 10% VAT in Italy, while hotel accommodation is also subject to 10% VAT. These reduced rates apply to both dine-in and takeaway restaurant services as well as short-term lodging.
Can Italian businesses claim VAT input credits?
Yes, registered VAT businesses in Italy can claim input tax credits for VAT paid on goods and services purchased for business use. However, certain expenses like food, drink, passenger transport, and 60% of car-related expenses have restrictions on input credit claims.
How often must businesses file VAT returns in Italy?
Italian businesses must file quarterly VAT communications if sales don't exceed €700,000 (goods) or €400,000 (services). Monthly VAT payments are required. Annual VAT returns are due before the end of April of the following year. All invoices must be submitted electronically via the SdI e-invoice system.
What are the penalties for late VAT payment in Italy?
Italy imposes strict penalties for VAT non-compliance. Late filings or payments can result in fines up to 240% of the VAT due plus interest. Additionally, non-submission of required documentation can lead to significant administrative penalties and potential legal consequences.

Official Italy Government Sources & References

All VAT data is sourced from official Italian government agencies and trusted financial authorities:

🏛️ Agenzia delle Entrate - Italian Tax Authority 📊 Agenzia delle Entrate - Official VAT Information 💼 Ministry of Economy and Finance - Italy 📝 Agenzia delle Entrate - VAT Regulations 🔄 Agenzia delle Entrate - Consumption Taxes ✅ Agenzia delle Entrate - VAT Refunds Portal

Related Calculators