Italy IVA calculator

In Italy the indirect tax on consumption is IVA (Imposta sul Valore Aggiunto), with a standard rate of 22%.

Italy keeps four rates. The 4% rate is reserved for staple foods, books and the press; 5% for certain social and health services; and 10% for hospitality, tourism and some building work. Livigno and Campione d'Italia sit outside the scope of Italian VAT.

This calculator works both ways: it adds the tax to a price without it and also breaks it out of a final price.

Enter the amount, choose whether to add or remove the tax and pick the rate. The rates available in Italy are: standard 22 %, reduced 10 %, reduced 2 5 % and super-reduced 4 %.

If you need a rate other than those listed, choose “other rate” and type it in.

Scorporo: the word to know

In Italy, separating the net amount from the VAT inside a final price is called scorporo, and it is everyday accounting practice. The rule is the usual one: divide by 1.22 at the standard rate rather than subtracting 22%.

Four rates with a social logic

The 4% rate covers bread, pasta, milk, books, the press and first homes. The 5% rate applies to certain social and health services and to some feminine hygiene products. The 10% rate covers hospitality, tourism, renovation work and household electricity.

Mandatory electronic invoicing

Italy led Europe here: since 2019 electronic invoices must pass through the Agenzia delle Entrate's Sistema di Interscambio. An invoice that has not gone through the SdI does not exist for tax purposes.

Split payment and reverse charge

Sales to public bodies use split payment: the supplier charges VAT but the administration pays it to the treasury. Construction and certain sectors operate under reverse charge, with VAT-free invoices.