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Italy VAT rise to 24% 2017

  • VAT
  • 15 December 2015 | Richard Asquith

Italy VAT rise to 24% 2017

The new Italian Stability Law of 2016 has introduced a potential VAT increase to 24% from 1 January 2017. There would be a second rise in 2018 to 25%.

The standard and reduced VAT increases would be as follows:

VAT Rate


Jan 2017

Jan 2018

Standard rate




Reduced rate




Super reduced rate




The imposition of the VAT rate increase will be dependant on the performance of the economy over the next twelve months. Italy had planned a similar VAT rise to 24% in 2016, but recently withdrew it based on renewed growth in the economy.

The 2017 VAT rise proposal has been put forward to reassure the European Commission of Italy’s resolve to remain within the Euro currency’s 3% deficit to GDP ratio.

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 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.