The budget law 2017 includes new value added tax (VAT) measures.
The law provides for a gradual increase in the VAT rates beginning in 2018. After being phased-in, the "reduced VAT rate" will ultimately be 13%, and the "standard VAT rate" will ultimately be 25.9%. The "super reduced VAT rate" will remain unchanged at 4%.
There are also new provisions under the VAT grouping rule (effective beginning in 2018). Other changes concern the consolidated VAT regime and bad debts.
Read a January 2017 report [PDF 189 KB] prepared by the KPMG member firm in Italy
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