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.