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Italy drops VAT rates on rice products

  • Aug 15, 2014 | Richard Asquith

Italy drops VAT rates on rice products

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.

VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.