The Italian parliament reduced VAT on art sales from 22% to 5%, the lowest rate in Europe, a move announced by Prime Minister Giorgia Meloni's government. The tax cut was celebrated at the 30th anniversary dinner of the Fondazione Sandretto Re Rebaudengo in Turin, where politician Federico Mollicone noted it had been over 30 years in the making. The contemporary art fair Artissima, holding its 32nd edition in Turin, became the first Italian fair to test the new tax policy. Italian dealers reported positive effects, including easier deal closures and increased sales to both Italian and European collectors, with some galleries experiencing their best opening day ever.
This tax overhaul matters because it aims to boost the competitiveness of Italy's art market amid a global slowdown, positioning the country more favorably against other European art hubs. By slashing VAT, the government hopes to stimulate not only dealer-collector transactions but also generate more revenue for artists and support for public institutions. Artissima's director Luigi Fassi emphasized the fair's international reach, with 60% of exhibitors from abroad, and noted that the tax change helps attract a broader, middle-class collector base. The policy's long-term impact remains to be seen, but it represents a significant shift in Italy's art market landscape.