IVA Itália 22%

Italian VAT (IVA): rates and rules

Italy charges IVA (Imposta sul Valore Aggiunto) on the sale of goods and services. The ordinary rate runs at 22% and gets added "by the outside," on top of the net price. There's a reduced rate of 10% for hospitality (hotels, restaurants) and a lot of food items, plus a super-reduced 4% for staples like books, newspapers and basic food. Take a €100 product at 22%: 100 · 1.22 = €122, leaving €22 of VAT owed to the Agenzia delle Entrate.

Practical applications

This comes in handy for Italian e-commerce sellers issuing fatture elettroniche, for Brazilian exporters pricing goods for Italian importers, for freelancers under the regime forfettario (a simplified tax regime for self-employed workers with revenue under €85,000 that exempts them from charging IVA), and for travelers trying to estimate costs. When VAT-registered businesses trade across EU borders, the supply is usually zero-rated and the buyer applies the reverse charge.

FAQ

Why is the ordinary rate 22%? Italy bumped it up from 21% to 22% in October 2013 during a round of fiscal consolidation. That puts it on the higher end for the EU, though it still trails Hungary (27%) and Denmark/Sweden (25%).

Does the forfettario charge IVA? No. Forfettario invoices go out without VAT, and the freelancer can't deduct VAT on inputs either. Think of it as a simplified flat-tax substitute.

How do I remove VAT from a gross price? Divide by 1 + rate. So a €122 gross at 22% works out to 122 / 1.22 = €100 net, leaving €22 of VAT.