Share with your friends

Italy: VAT rate increases delayed in draft budget law 2018

Italy: VAT rate increases in draft budget law 2018

The draft budget law 2018, expected to be approved by the end of 2017 and effective beginning 2018, includes measures that would change the rates of value added tax (VAT) beginning in 2019.


Related content

VAT rate increases delayed until 2019

In October 2017, VAT rate increases were scheduled under Law Decree no. 148/2017 to be effective 1 January 2018. However, the draft budget law 2018 does not provide for VAT rate increases in 2018. Instead, the draft budget law postpones a gradual increase in the VAT rates to 1 January 2019.

The schedule for the VAT rate increases are proposed to be:


The “reduced” 10% VAT rate would increase:

  • From 10% to 11.5% as of 1 January 2019
  • From 11.5% to 13% as of 1 January 2020


The “standard” 22% VAT rate would increase:

  • From 22% to 24.2% as of 1 January 2019
  • From 24.2% to 24.9% as of 1 January 2020
  • From 24.9% to 25% as of 1 January 2021


These VAT rate increases, however, would not apply if certain budgetary targets are met.


Read a November 2017 report [PDF 175 KB] prepared by the KPMG member firm in Italy

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Want to do business with KPMG?


loading image Request for proposal