How Italian VAT (IVA) Works: Rates, Imponibile, and Scorporo (2026)

Italy's value-added tax is called IVA (Imposta sul Valore Aggiunto). It is charged at each stage of the supply chain on the sale of goods and services, and the cost is ultimately borne by the final consumer. Italy has four IVA rates, compared to three in Spain and France, and the correct rate depends on the category of goods or service being sold.

The four Italian IVA rates (2026)

Imponibile, IVA, and totale: the three figures on every Italian invoice

Every Italian business invoice (fattura) must show three amounts. The imponibile is the price before IVA, the net value of the goods or service. The IVA is the tax itself, calculated as a percentage of the imponibile. The totale (or importo totale) is what the buyer actually pays: imponibile plus IVA. Consumer receipts often show only the totale. Business invoices must show all three, along with the rate applied.

Worked example: adding IVA at 22 %

A graphic designer invoices a client for services at an imponibile of 100 EUR at the standard 22 % rate. The IVA is 100 x 0.22 = 22 EUR. The totale is 100 + 22 = 122 EUR. The formula is: totale = imponibile x (1 + rate/100). At 10 %: totale = 100 x 1.10 = 110 EUR. At 5 %: totale = 100 x 1.05 = 105 EUR. At 4 %: totale = 100 x 1.04 = 104 EUR.

Scorporo: extracting IVA from a gross total

Scorporo is the process of removing IVA from a price that already includes it (totale IVA inclusa), to find the underlying imponibile. The formula is: imponibile = totale / (1 + rate/100). At 22 %: imponibile = 122 / 1.22 = 100 EUR; IVA = 122 - 100 = 22 EUR. This operation is common in accounting and when reconciling consumer receipts with business records.

What goods and services fall under each rate?

• 22 % (ordinaria): the default rate for anything not in the lists below. Electronics, clothing, software licences, financial services where IVA applies, alcohol, petrol, cars, and hotel stays in the luxury category all attract 22 %.
• 10 % (ridotta): restaurants, bars, and cafes for food and drink consumed on the premises; hotels and tourist accommodation; bus, rail, and ferry passenger fares; residential building construction and renovation; processed foods such as canned goods, pasta, and non-basic dairy products.
• 5 % (minima): specific social-sector goods and services provided by cooperatives or social enterprises, and certain disability and medical aids designated by ministerial decree.
• 4 % (super ridotta): staple foods including bread, flour, milk, eggs, fresh fruit, and fresh vegetables; books, newspapers, and magazines (including digital editions); purchases of a first main residence (prima casa) under specific conditions; agricultural tractors and machinery.