Italy drops VAT rates on rice products
- European News
- 15 August 2014 | Richard Asquith
The Italian VAT authorities have clarified that the super reduced VAT rate of 4% will apply to rice-based products. This new Resolution allows for prepared foods, cereals, pre-cooked dishes etc., based on rice.
Under the EU VAT Directive, member states may operate two reduced VAT rates below their standard VAT rate. The latter must be 15% or above, whilst there may only be two reduced rates which cannot be below 5% without special concession from the European Commission.
Italy’s standard VAT rate is 22%. Italy raised VAT from 21% to 22% in 2013. Its other reduced Italian VAT rate is 10%, and is applied on certain foodstuffs, tourism-related services, domestic fuel and other services. Aside from rice products, the 4% rate is levied on basic foods and books & newspapers.