Italy VAT rise to 24% 2017
The new Italian Stability Law of 2016 has introduced a potential VAT increase to 24% from 1 January 2017. There would be a second rise in 2018 to 25%.
The standard and reduced VAT increases would be as follows:
|Super reduced rate||
The imposition of the VAT rate increase will be dependant on the performance of the economy over the next twelve months. Italy had planned a similar VAT rise to 24% in 2016, but recently withdrew it based on renewed growth in the economy.
The 2017 VAT rise proposal has been put forward to reassure the European Commission of Italy’s resolve to remain within the Euro currency’s 3% deficit to GDP ratio.