VAT Calculator Italy – Italy vat refund calculator

The standard VAT Rate is 22%. Now you can calculate the tax  Vat Calculator Italy.

At present, the standard rate at which Value-Added Tax (VAT) is collected in Italy is 22%. VAT, in Italian, is called Imposta sul Valore Aggiunto (IVA). In addition to the standard rate, Italy also charges VAT at two reduced 10% and 4% rates.

The 10% reduced rate is levied on specific products and services, for instance, Hotels, Pharmaceuticals, Restaurants, and Passenger Transport. The reduced rate of 4% is applied to some other goods and services, for example, Medications, Food, and Books.

Since Italy is one of the EU member states, the VAT regime followed by the VAT System of Italy is also that of the European Union. Value-Added Tax (VAT) was into effect in Italy in the year 1972.

Vat Calculator Italy | Italy vat refund calculator

Example

Find the VAT price and net price in Italy (GST % is 21) for an amount of 30000 €

Add Tax

Solution :
GST % = 22
Amount = 30000

Step 1 :
GST Price = (30000 * 22 ) / 100
=  6600 €

Step 2 :
Net Price = 30000 + 6600
= 36600 €

Hence the VAT Price is 6600 € and Net Price is 36600 €

Remove Tax

Solution :
GST % = 22
Amount = 30000

Step 1 :
GST Price = 30000 – (30000 * ( 100 / (100 + 22)))
GST Price = 5409 €

Step 2 :
Net Price = 30000 – 5409
= 24591 €

Hence the VAT Price is 5409 € and Net Price is 24591 €

Different VAT Rates in Italy:

5 Different rates of VAT are currently applicable in Greece.

The standard rate of 22%:

This is applied to all goods and services that are taxable.

The reduced rate of 10%:

This is applied to some goods and services, for instance:

• Certain Food items
• Alcoholic beverages
• Certain pharmaceutical products
• Water Supplies
• Domestic Transport for Passengers
• Cultural Event’s Tickets
• Private Dwelling’s Renovation
• Private Dwelling’s Repair
• Hotel Accommodation
• Agricultural Supply

The reduced rate of 5%:

This is applied to some products and services, for example:

• Certain Food Items
• Some services provided that they are of social nature
• Some passenger transport

The reduced rate of 4%:

This is charged on some services and goods, for example:

• Certain Food Items
• Some Books
• Some Periodicals
• Newspaper
• TV License
• Agricultural Supplies

Zero-Rated VAT:

Zero-rated VAT is levied on some services, for instance:

• Intra-community transport
• International transport

History of VAT in Italy:

Italy got introduced VAT in 1968. At that time, the standard rate of VAT was 11%. In 2006, VAT was charged in Italy at the standard rate of 16%. The rate reached its current value of 19% in 2007, and it has remained the same ever since. Until July 1^st, 2020, the standard rate of VAT was temporarily reduced to 16% till 31^st December. Since its inception, the Maximum rate at which VAT was ever charged in Italy has been 19%, and the minimum rate has been 11%.

Read More: vat on fuel & business mileage

Goods and Services Exempted from VAT in Italy:

Italy has indeed a very high rate of VAT, but on the other hand, in addition to having reduced rates of 10%, 5%, and 4%, there are also some products and services that are exempted from VAT, for instance:

• • Postage Stamp Sales
  • Stamp Duties’ Sales
  • Medical Services
  • Financial Expenses
  • Insurance Operations
  • Education
  • Immovable Property’s leasing
  • Money Transfer

You can also check VAT Calculator Germany.

FAQs:

Q: Do I have to pay VAT in Italy?

Yes, you have to pay VAT in Italy. In Italy, VAT is known as ‘Imposta sul Valore Aggiunto’ (IVA). It was implemented, for the first time, in Italy in the year 1972. At present, its standard rate is 22%. There are also reduced rates of 10%, 5%, and 4%, in addition to zero-rated VAT being levied on some services.

Q: How much VAT do you get back to Italy?

The refund Rate in Greece ranges from 11.6% to 15.5%. Of the amount of purchase provided that there is a minimum purchase of 154.95 EUR per receipt. To be eligible for a refund, you need to have permanent residence in a non-EU state. Additionally, for large purchases, Italy has one of the highest rates of refunds at 15.5%.

Q: Are taxes high in Italy?

Italy has progressive tax rates ranging from 22% to 43%. Some additional taxes are due at local and regional levels.

Here is a list of all our VAT Calculator. It includes most countries in the world.

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Shane Watson

Indirect Tax Professional at vatcalculatorg

📚 I am an Indirect Tax Professional with substantial work experience in VAT/Indirect Tax. I am adept at quickly assessing client needs and developing strategies to provide excellent solutions.

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