Italy increases VAT from 21% to 22% 1 July 2013
Italy has said that it will raise its standard VAT rate by 1% to 22% on 1 July 2013.
The increase has been much debated since it was announced in December 2011 as a 2% VAT rise. Since then, the reformist government of Mario Monti has made great strides in economic reforms and expenditure cuts. It had hoped to eliminate the need for an increase altogether.
The Italian VAT rate was last raised by 1% to 21% in September 2011. This was at the height of one of the recent Euro currency crisis, as was driven by financial markets’ requirements for concrete measures to demonstrate Italy’s resolve to tackles its huge debt mountain.
There is to be no change to the reduced VAT rate of 10%. It you would like to learn more about Italian VAT, please read our briefing.