Because of Covid-19, Italy decided to cancel the increase in VAT rates initially planned for 1 January 2021. Consequently, VAT rates in Italy will remain unchanged on 1 January 2021, i.e.:
- standard VAT rate at 22%;
- reduced VAT rate at 10%.
As a reminder, Italy was planning to increase the standard VAT rate to 25% and the reduced VAT rate to 12%.
Source: Gazzetta Ufficiale della Repubblica Italiana (in italian)
