Artworks now eligible for 5% reduced VAT rate

Italian VAT law introduces a reduced 5% VAT rate on sales and imports of artworks, antiques, and collectibles, as defined in the relevant provisions.

In line with the tax reform, from July 1, 2025, all sales and imports of such items will be subject to a single 5% rate.

Until that date, only a 10% reduced rate applied, but in limited cases, i.e. imports and direct sales made by artists, their heirs, or legatees. In all other situations, the standard 22% rate applied.

The new reduced rate extends the subjective scope of application, covering all imports and sales carried out by galleries, art dealers (acting as intermediaries), as well as by artists, provided the margin scheme is not applied.

The margin scheme, which remains in force, applies to sales of imported artworks, antiques, or collectibles, as well as to the resale of artworks acquired directly from the artist or from their heirs or legatees. In such cases, VAT continues to be calculated only on the dealer’s margin, already resulting in a reduced tax burden.

 

Key takeaway

The new 5% VAT rate, effective from July 1, 2025, supports the Italian art market in the face of growing international competition. This change represents a first step in implementing the broader VAT reform. A more comprehensive VAT reform is still expected, with the goal of aligning Italy’s VAT system with the guiding principles of the EU framework.

 

Reference

Law Decree 30 June 2025, n. 95