Italy VAT Calculator 2026

22% standard, with reduced rates of 10% and 5% on specified categories.

Figures last reviewed 17 August 2026

Italy VAT at a glance

Standard VAT rate: 22% — ranked 10 of 36 covered here
Reduced rates: 10%, 5% — applies to specified categories only
Super-reduced rate: 4% — a small, historically fixed list of goods
Compared with the average: +5.01 pts — average across the 36 countries covered is 16.99%
Registration threshold: 85,000 EUR — annual turnover above which registration becomes compulsory
Rates verified: 17 August 2026 — checked against the issuing tax authority

Italian IVA: 22% standard, with 10%, 5% and 4% reduced rates

Italy calls VAT Imposta sul Valore Aggiunto (IVA). The standard rate is 22%, unchanged since October 2013. Three reduced rates apply:

10% — most foodstuffs not at 4%, electricity for residential use, hotels, restaurants, public transport, pharmaceuticals (most), some construction-related works
5% — selected social-services items (e.g. specific feminine hygiene products, infant formula in 2025), some welfare-cooperative supplies
4% — “super-reduced” rate, on basic necessities: bread, pasta, milk, fresh fruit, books and newspapers (incl. e-books), prosthetics, principal-residence purchases (first home), and certain agricultural inputs

The Forfettario Regime and registration thresholds

Italy doesn't have a turnover-based exemption for normal VAT registration — anyone carrying on a business must obtain a Partita IVA. However, sole proprietors and freelancers can opt into the Regime Forfettario, a flat-tax simplified regime for revenues up to EUR 85,000/year, which exempts them from charging IVA and from filing IVA returns.

Forfettario users invoice without IVA (with a specific exemption note), can't recover input IVA, and pay a flat substitute tax (5% for the first 5 years for new businesses, 15% thereafter). For most freelancers under EUR 85k it's significantly more favourable than ordinary IVA + IRPEF.

Mandatory e-invoicing through Sistema di Interscambio (SDI)

Italy was the first EU country to make B2B and B2C electronic invoicing mandatory: every IVA invoice (with rare exceptions) must be issued in XML format and routed through Sistema di Interscambio (SDI), the public exchange operated by the Agenzia delle Entrate. As of 2024, this extends to forfettario taxpayers too (previously exempt up to EUR 25k).

Pre-filled annual VAT returns are now generated by the Agenzia from the SDI data. The 2024 reform also pre-fills periodic VAT settlements (LIPE forms). Businesses must accept or amend the pre-filled figures rather than file from scratch — a significant operational change.

Worked examples

EUR 100 restaurant bill (10%): IVA EUR 9.09 inside, net EUR 90.91 → gross EUR 100.
EUR 1,000 consulting fee (22%): output IVA EUR 220, gross EUR 1,220.
EUR 50 children's book (4%): IVA EUR 1.92 inside a EUR 50 cover price.
EUR 1,000 invoice from a Forfettario freelancer: IVA EUR 0, exemption note “Operazione senza applicazione dell'IVA, ai sensi della L.190/2014 e succ. mod.”

Frequently asked questions

Are e-books really 4%?

Yes. Italy aligned the e-book rate with print under Law 232/2016, dropping it from 22% to 4%. The same applies to digital newspapers and periodicals. Audiobooks were also brought to 4% in line with EU Council Directive 2018/1713.

What is the 5% rate for?

The 5% bracket is small and specific: certain feminine hygiene products, infant formula, welfare-cooperative supplies, and a handful of social-services items. Most retail transactions never see 5% — it's a niche category.

Do I have to e-invoice if I'm a freelance designer?

Yes, since 1 January 2024 even Forfettario taxpayers must e-invoice through SDI. The XML must include the natura code “N2.2” for forfettario non-IVA operations. Most accounting software for Italian micro-businesses handles this automatically.

When are IVA returns due?

Monthly liquidations are due by the 16th of the following month (quarterly for taxpayers under EUR 500k goods / EUR 400k services). The annual IVA return (Modello IVA) is due 30 April of the following year. The LIPE quarterly summary is due by the last day of the second month after each quarter.

Can a foreign business get an Italian VAT number?

Yes — non-EU businesses register through a fiscal representative (mandatory); EU businesses can register directly. Distance sellers above the EU EUR 10,000 threshold typically use OSS instead of a direct Italian registration.

Official sources

Last reviewed: 2026-05-10. Other EU rates: VAT calculator hub.

How VAT works in Italy

Standard 22%, Reduced 10% (tourism, restaurants), 5% (food), Super-reduced 4% (essentials)

Calculating Italy VAT

Start from the price excluding tax
VAT is charged on the net price. At 22%, a net EUR 100 becomes EUR 122.00 once VAT of EUR 22.00 is added.
To work backwards, divide — never subtract
Removing VAT from a gross figure means dividing by 1.2200, not subtracting 22%. Subtracting the percentage from the gross amount understates the net price, and the error grows with the rate.
Check which rate actually applies
Italy applies reduced rates of 10% and 5% to specified categories. Standard 22%, Reduced 10% (tourism, restaurants), 5% (food), Super-reduced 4% (essentials) Using the standard rate on a reduced-rate supply overstates the tax.
Registration is threshold-based
Businesses with taxable turnover above EUR 85,000 a year must register and charge VAT. Below it, registration is usually voluntary — worth doing when your customers can reclaim the tax.

Worked example at 22%

Adding and removing VAT at 22%

Component	Adding to a net price	Removing from a gross price
Starting amount	EUR 100.00	EUR 1,000.00
VAT at 22%	(EUR 22.00)	(EUR 180.33)
Result	EUR 122.00	EUR 819.67

So a net price of EUR 100.00 in Italy costs EUR 122.00 once VAT is added. Working the other way, a gross price of EUR 1,000.00 contains EUR 180.33 of VAT, leaving EUR 819.67 net.

Computed from the same 22% rate the calculator applies, so this table and the calculator cannot disagree.

Countries with a similar rate

Spain21%Netherlands21%Belgium21%Poland23%

Italy VAT questions

What is the VAT rate in Italy?

The standard rate is 22%. Reduced rates of 10% and 5% apply to specified categories. That places Italy 10 of 36 of the countries covered here, 5.01 points above the 16.99% average.

How do I remove VAT from a price in Italy?

Divide the gross amount by 1.2200. At 22%, a gross EUR 1,000 works back to EUR 819.67 net with EUR 180.33 of VAT. Subtracting 22% from the gross figure is the common mistake and gives the wrong answer.

When do I have to register for VAT in Italy?

Once taxable turnover passes EUR 85,000 a year. Registering voluntarily below the threshold lets you reclaim input tax, which usually pays off if you sell mainly to other registered businesses and costs you if you sell to consumers.

Which countries have higher and lower rates than Italy?

Of the countries covered here, Finland has the highest standard rate at 25.5% and United Arab Emirates the lowest at 5%. Italy sits at 22%.

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