Italy VAT rise confirmed for 2021
- Jan 20, 2020 | Richard Asquith
Italy has confirmed that is has rolled over the 2020 planned VAT rise for another year. The new plan is for the current standard rate of 22% to rise to 25% in January 2021, and then to 26.5% in January 2022. This is contained within the new 2020 Budget Law. There will be an increase in the reduced rate of 10% to 12% in January 2021.
The measure had been scheduled in the 2019 Budget Law for 1 January 2020. It had already been delayed one year in 2018. It was designed to ensure Italy remained within the Euro currency budget deficit rule of 3% of GDP. However, on both occasions, compromises have been found to avoid the rise.
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