Art News. Vasari Codex

italy cuts art vat to 5 percent 1234745954

Italy has announced a reduction in its VAT on art sales from 22 percent to 5 percent, the lowest rate in the European Union. The move, approved in a cabinet meeting and set to take effect within days, follows sustained pressure from Italian galleries, artists, auction houses, and art market players. The new rate must be approved by parliament within 60 days to become permanent. The change aligns with an EU directive allowing member states to lower taxes on art sales to at least 5 percent, and comes after the government initially resisted calls for reform.

article policy schedule Jun 23, 2025 visibility 13 link 3 artists

‘Momentous’: Italy to slash art VAT to 5%, the lowest rate in the EU

Italian lawmakers have approved a reduction of VAT on art sales from 22% to 5%, the lowest rate in the European Union. The decision, announced by culture minister Alessandro Giuli after a cabinet meeting on June 20, is expected to take effect this week. The reform follows intense lobbying by art market groups and a letter signed by 500 art world figures, including artists Maurizio Cattelan and Michelangelo Pistoletto, who warned the high rate was turning Italy into a "cultural desert." The tax cut must be passed by parliament within 60 days to remain in force, and may also apply to import VAT, potentially making Italy the most competitive art market in Europe from a tax standpoint.

newspaper The Art Newspaper open_in_new Read original