Italy Value Added Tax
- In most cases, VAT is 22%.
- There are reduced rates of VAT of 4% 5%, and 10% on basic products.
- VAT is charged on assets and services in Italy as well as on imports into Italy.
- VAT returns are made once a quarter.
- An annual VAT return must be filed by the end of April for the previous year.
Italy Inheritance Tax/Gift Tax
Inheritance tax was reintroduced in Italy from 2007.The tax rates are 4%-8% of the asset value.
The tax rates are lower for those having closer family relation to the donor/deceased.
Thus spouses and children pay lower tax rates than remote family members.
Italy Real Estate Property Tax
- This tax is imposed on real estate.
- The tax is based on an assessment of the value of the asset by the tax authorities.
- The rates of this tax vary from 0.86% to 1.06%.
Digital Services Tax
Starting January 1, 2020 a sales digital services tax of 3% tax is imposed on sales of certain digital services companies.The tax applies to companies with sales exceeding EUR 750 million and annual income in Italy exceeding EUR 5.5 million in the previous year from digital services.
Note: The information in this site is for general guidance only. Users of this site are advised to take professional advice before taking practical tax decisions.
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