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Italian VAT has been raised to 22  %

07 October 2013

With October 1st, 2013 the Italian main value-added (VAT) has been raised by one percentage point to 22 percent. This procedure had already been due for July, 1st, 2013 but had then been delayed for three months. For a long time the scheduled VAT increase seemed to be further on hold – until January 2014 – but in the last instance the standard VAT raise increase has been established on October 1st 2013.

Affected by this raise are 70 % of all products and services
  • gasoline (+1,5 Cent), diesel (+1,4 Cent), liquefied petroleum gas (+0,7 Cent)
  • clothing and shoes
  • domestic appliances and furnishings
  • toys
  • jewellery
  • automobile electronics
  • alcohol
  • services from qualified employees, craftsmen, hairdressers, cosmetologists …
Not affected by the VAT increase are
  • basic food like bread, rice, flour, pasta, milk, cheese, fruit and vegetables. Those items do remain at a VAT rate of 4 % like books, newspapers, journals and glasses. 

  • cereal products, meat- and sausage products, fish, frozen food, honey, sweets, sugar, baby food, coffee, tee and chocolate. Those products remain at a VAT level of 10 %. 

  • drinkable water, electricity and gas, medicine, transport facilities, cinema and theatre, restaurant- and hotel trade. Also these products are not affected by the VAT increase.

Good to know

  • The retail business can adopt new prices but also has the possibility of leaving them at the same level in favour of the customer.
  • Invoices of contractors need to be invoiced with the new VAT rate starting on October 1st. This can cause an unexpected additional cost for who has to pay somebody for a service already made prior to that date. Who effected a prepayment prior to October 1st remains with the old VAT rate of 21 %. The balance though needs to be invoiced with the VAT rate of 22 % starting by October 1st.
  • Deliveries that have not been paid yet need to go by the date of delivery: Goods that have been delivered prior to October 1st, 2013 can still be invoiced with the VAT rate of 21 % if invoiced before October 15th.
  • The decisive factor for real estate properties is the date of the notarized deed. Contracts that have been made prior to October 1st, 2013 implicate a VAT rate of 22 %, regardless of any given eventual pre-contract.

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