VAT rates in Italy: all the updated information 2025

As part of the European Union, Italy is naturally also using VAT to handle national and international sales. This article will briefly show what VAT is, what rates there are, and what you should know about VAT in Italy. Here, you have all the information you need to know about VAT rates in Italy, updated as of June 2025.

VAT in 2 sentences

The VAT is a broadly-based consumption tax that is assessed on the value that is added to goods and services. The Value Added Tax, that’s what VAT stands for, applies to nearly all goods and services that are bought and sold within the European Union.

VAT rates in Italy: which one applies to which product

Italian VAT rate of 22% (Standard):

All taxable goods and services that are not listed in the following Italian VAT rates.

Note: While these VAT rate categories remain valid as of June 2025, the classification of goods and services may change based on updates from the Agenzia delle Entrate (Italian tax office). Always confirm applicable VAT rates before invoicing.

Value Added Tax rate in Italy of 10% (Reduced):

Applies to selected goods and services, including:

• Certain foodstuffs

• Water supplies

• Specific pharmaceutical products

• Domestic passenger transport

• Hotel accommodation and restaurants

• Cultural and sports event admissions

• Renovation and repair of private dwellings

• Some social housing and construction works

• Energy products (excluding district heating)

• Firewood, waste collection, and wastewater treatment

• Take-away food and non-packaged alcoholic beverages
  (List subject to revision by Italian tax authorities)

VAT-rate of 5% (Reduced):

Applies to a limited list, including:

• Certain essential food items

• Selected social and healthcare services

• Some cultural or charitable sector transactions

4% (Super-reduced VAT rate):

Applies to:

• Basic food products

• Printed and digital books (with ISBN)

• Newspapers and periodicals

• Certain medical aids and equipment for disabled persons

• Social housing

• Construction of first residential housing

• Some agricultural supplies and services

• Vehicles for people with disabilities
  (Some items may qualify only with medical or legal certification.)

VAT rate in Italy – 0% (Zero):

Applies to:

• Intra-community supplies to VAT-registered EU buyers

• Exports to non-EU countries

• International transport services (air, sea)

• Certain cross-border services that qualify under EU VAT rules
  Sellers must keep appropriate documentation to justify 0% VAT treatment.

VAT for online sellers in 2025

Since July 2021, cross-border B2C sellers in the EU can use the One Stop Shop (OSS) to report and pay VAT in multiple EU countries with a single return.
Non-EU sellers shipping low-value goods to EU consumers can use the Import OSS (IOSS) scheme.

Additionally, under the VAT in the Digital Age (ViDA) reform adopted in March 2025, Italy is transitioning to mandatory e-invoicing and real-time digital VAT reporting for online transactions. This means online sellers will be required to submit sales data electronically using certified invoicing platforms.

At hellotax, we help automate VAT compliance across all affected countries, including registration, reporting, and e-invoicing under the new ViDA rules.

Staying compliant with VAT rates in Italy in 2025

Whether you’re an online seller shipping goods to Italy, a marketplace participant using FBA, or a service provider reaching Italian consumers, keeping up with VAT rates in Italy and the latest digital VAT compliance rules is essential.

In 2025, Italy continues to enforce its standard VAT rate of 22%, alongside reduced rates of 10%, 5%, and 4% for specific products and services. With the rollout of the VAT in the Digital Age (ViDA) reforms, including mandatory e-invoicing and real-time reporting, accurate invoicing and timely filings are more critical than ever.

If you sell across multiple EU countries, using the OSS scheme can simplify your cross-border VAT obligations, helping you avoid multiple national registrations and filings.

👉 Need help managing different VAT rates, setting up your OSS filings, or ensuring your Italian e-invoices meet ViDA standards?
Let hellotax take care of it for you. From registrations to automated filings and compliance with Italy’s latest VAT rules, we’ve got you covered.

Book a free consultation today and see how easy VAT compliance can be.