VATLive > Blog > Blog Post > Italy VAT rise confirmed for 2021

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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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 can be contacted at: He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.
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