- Reduction of VAT on Art and Antiques: Italy has reduced the VAT rate on sales and imports of works of art, antiques, and collectibles to 5% effective July 1, 2025, through Decree-Law No. 95/2025, aimed at revitalizing the country’s art market and making it more competitive with other European countries.
- Implementation Details and Compliance: The new VAT rate applies to qualifying transactions defined by specific CN codes, while transportation and related services remain at the standard rate. Resellers must adhere to updated tax codes and cannot use the margin scheme for items purchased under the 5% regime.
- Anticipated Effects and Next Steps: The move positions Italy as one of the lowest VAT jurisdictions for art supplies in Europe, potentially increasing import volumes and cross-border sales. The decree must be converted into law by Parliament within 60 days, and stakeholders are looking for further guidance from tax authorities on specific scenarios and the impact on the upcoming art fair cycle.
Source VAT IT Compliance
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