Italy VAT Calculator 2026
Calculate Italian IVA (VAT) with multiple rate tiers
Calculate VAT
Enter your amount to see the complete VAT breakdown
Italian IVA: 22% standard, with 10%, 5% and 4% reduced rates
Italy calls VAT Imposta sul Valore Aggiunto (IVA). The standard rate is 22%, unchanged since October 2013. Three reduced rates apply:
- 10% — most foodstuffs not at 4%, electricity for residential use, hotels, restaurants, public transport, pharmaceuticals (most), some construction-related works
- 5% — selected social-services items (e.g. specific feminine hygiene products, infant formula in 2025), some welfare-cooperative supplies
- 4% — “super-reduced” rate, on basic necessities: bread, pasta, milk, fresh fruit, books and newspapers (incl. e-books), prosthetics, principal-residence purchases (first home), and certain agricultural inputs
The Forfettario Regime and registration thresholds
Italy doesn't have a turnover-based exemption for normal VAT registration — anyone carrying on a business must obtain a Partita IVA. However, sole proprietors and freelancers can opt into the Regime Forfettario, a flat-tax simplified regime for revenues up to EUR 85,000/year, which exempts them from charging IVA and from filing IVA returns.
Forfettario users invoice without IVA (with a specific exemption note), can't recover input IVA, and pay a flat substitute tax (5% for the first 5 years for new businesses, 15% thereafter). For most freelancers under EUR 85k it's significantly more favourable than ordinary IVA + IRPEF.
Mandatory e-invoicing through Sistema di Interscambio (SDI)
Italy was the first EU country to make B2B and B2C electronic invoicing mandatory: every IVA invoice (with rare exceptions) must be issued in XML format and routed through Sistema di Interscambio (SDI), the public exchange operated by the Agenzia delle Entrate. As of 2024, this extends to forfettario taxpayers too (previously exempt up to EUR 25k).
Pre-filled annual VAT returns are now generated by the Agenzia from the SDI data. The 2024 reform also pre-fills periodic VAT settlements (LIPE forms). Businesses must accept or amend the pre-filled figures rather than file from scratch — a significant operational change.
Worked examples
- EUR 100 restaurant bill (10%): IVA EUR 9.09 inside, net EUR 90.91 → gross EUR 100.
- EUR 1,000 consulting fee (22%): output IVA EUR 220, gross EUR 1,220.
- EUR 50 children's book (4%): IVA EUR 1.92 inside a EUR 50 cover price.
- EUR 1,000 invoice from a Forfettario freelancer: IVA EUR 0, exemption note “Operazione senza applicazione dell'IVA, ai sensi della L.190/2014 e succ. mod.”
Frequently asked questions
Are e-books really 4%?
Yes. Italy aligned the e-book rate with print under Law 232/2016, dropping it from 22% to 4%. The same applies to digital newspapers and periodicals. Audiobooks were also brought to 4% in line with EU Council Directive 2018/1713.
What is the 5% rate for?
The 5% bracket is small and specific: certain feminine hygiene products, infant formula, welfare-cooperative supplies, and a handful of social-services items. Most retail transactions never see 5% — it's a niche category.
Do I have to e-invoice if I'm a freelance designer?
Yes, since 1 January 2024 even Forfettario taxpayers must e-invoice through SDI. The XML must include the natura code “N2.2” for forfettario non-IVA operations. Most accounting software for Italian micro-businesses handles this automatically.
When are IVA returns due?
Monthly liquidations are due by the 16th of the following month (quarterly for taxpayers under EUR 500k goods / EUR 400k services). The annual IVA return (Modello IVA) is due 30 April of the following year. The LIPE quarterly summary is due by the last day of the second month after each quarter.
Can a foreign business get an Italian VAT number?
Yes — non-EU businesses register through a fiscal representative (mandatory); EU businesses can register directly. Distance sellers above the EU EUR 10,000 threshold typically use OSS instead of a direct Italian registration.
Official sources
- Agenzia delle Entrate — VAT (English)
- Agenzia delle Entrate — Aliquote IVA
- Agenzia delle Entrate — Regime Forfettario
Last reviewed: 2026-05-10. Other EU rates: VAT calculator hub.