Italy · 2025
Italy VAT calculator
Work out Italian IVA on any price. Add it to a net amount to find the gross, or strip it out of a VAT-inclusive amount to recover the net. The standard rate is 22%, with reduced rates of 10% and 5% and a super-reduced 4% rate for essentials. Pick the rate that matches how the good or service is classified under Tabella A of DPR 633/1972.
How it works
- To add VAT, multiply the net price by the rate. At 22%, a net price of EUR 100 carries EUR 22 of VAT, giving EUR 122 in total.
- To remove VAT from a gross price, divide by 1 plus the rate. At 22%, divide by 1.22: a EUR 122 gross price is EUR 100 net plus EUR 22 VAT.
- The same method works for the reduced rates. At 10% you multiply or divide by 1.10, at 5% by 1.05, and at 4% by 1.04.
Worked example
A EUR 500 net invoice at the standard 22% rate carries EUR 110 VAT, so EUR 610 to pay. Working backwards, a EUR 610 gross total contains EUR 110 VAT and EUR 500 net.
Frequently asked questions
What do the Italian VAT rates apply to?+
The 22% standard rate is the default for any supply not listed elsewhere. The 10% rate covers domestic energy, many foods, medicines, hotels, restaurants and renovation work. The 5% rate covers certain basic foods and some social, health and transport services. The 4% super-reduced rate covers essentials such as staple foods, books, newspapers and first-home purchases.
Is there a VAT registration threshold in Italy?+
There is no general turnover threshold below which a resident business can trade without a VAT number. Anyone carrying on a regular business or profession must open a partita IVA from the outset. The flat-rate regime (regime forfettario), with its own simplified VAT treatment, is available up to EUR 85,000 of annual revenue.
What is the difference between zero-rated and exempt in Italy?+
Italy does not use a 0% rate the way some countries do; its lowest positive rate is 4%. Exempt supplies (operazioni esenti), such as most financial, insurance, medical and education services, carry no VAT but normally block the supplier from reclaiming input VAT. Exports and intra-EU supplies are instead non-taxable (non imponibili) and do keep the right to deduct.
Do Italian prices shown to consumers include VAT?+
Yes. Prices displayed to consumers must be IVA inclusive, so the figure on the shelf or menu is what you pay. Business-to-business quotes and invoices are usually shown net (imponibile), with the VAT added as a separate line.
Sources
- IVA - Norme generali e aliquote · Agenzia delle Entrate
Last updated: 2025-01-01 · Applies to 2025
This is an estimate for general guidance, not financial, tax, legal or medical advice. Figures can change and individual circumstances vary. Always confirm with the official sources listed before making decisions.
- Rates current for 2025.
- Classify the good or service against Tabella A (parts II, II-bis and III) of DPR 633/1972; anything not listed is taxed at the 22% standard rate.
Reviewed by Vikas Dulgunde.