‘Historic Move’: Italy to Cut Art VAT to 5%, the Lowest in the European Union

Italy’s government approved a VAT reduction on art sales from 22% to 5%, aiming to transform the country into a major European hub for galleries, fairs, and international art trade.
The new rate, pending parliamentary approval, could apply to imported art, making Italy’s market more competitive than France and Germany, following successful lobbying efforts by national art sector groups.
Broader reforms include simplifying cultural export licenses and digitizing cultural site registries, with projections estimating €1.5bn in annual turnover and €4.2bn in added economic value within three years.