Italy slashed VAT on art sales from 22% to 5% in July 2024, the lowest rate in the European Union, after two decades of lobbying by the Apollo Group. The tax cut took effect just before Artissima, Italy's largest contemporary art fair, which saw strong turnout and reported sales increases for many of its 73 Italian galleries, with prices ranging from $2,200 to nearly $20,000. ARTnews interviewed Artissima director Luigi Fassi about the impact of the new rate on the Italian art market and the broader cultural ecosystem.
The VAT reduction is a landmark shift for Italy's art market, removing a major barrier that had driven collectors to buy abroad. Fassi argues the cut will boost gallery revenues, support artists, and encourage private sector support for public institutions. Combined with Italy's flat tax for wealthy non-domiciles and the recent opening of a Thaddaeus Ropac gallery in Milan, the change signals a potential renaissance for Italy as a competitive art hub within Europe.