Italy VAT take rise giving hope of avoiding October 2013 1% VAT rise
- 11 July 2013 | Richard Asquith
The Italian government, which has been in recession for almost two years, is showing signs of recovery with the first rise in VAT receipts since last year.
This news comes following last month’s decision to postpone the Italian 1% VAT rise to 22% on 1 July 2013. This delay came as government coalition partners argued about the potential of making spending savings instead of imposing the Italian VAT rise.
However, one of the major credit rating agencies, Standard & Poor’s, has just downgraded Italian debt this week, which will put pressure on borrowing costs. It also reflects general market skepticism about the ability of the government to reduce the huge Italian debt pile.
It is anticipated that a final decision on the 1% VAT rise will be taken this month (July). You can review all EU VAT rates here.