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20
jul

Italy deferred increase in VAT rates

On 6 July 2012, the Law Decree No. 95/2012 on the spending review was published in the Official Gazette No. 156

The decree, which entered into force on 7 July 2012, contains several urgent spending cut measures and will be debated in the Parliament.

Under article 21 of the decree, the increase in the VAT rates from the current 21% (standard rate) and 10% (reduced rate) to 23% and 12% respectively, scheduled for 1 October 2012, has been provisionally deferred.

If, however, on 30 June 2013, certain financial targets are not met:
• The increased rates of 23% and 12% will apply from 1 July 2013 to
31 December 2013.
• A standard rate of 22% and a reduced rate of 11% will apply from
1 January 2014.
tmagazine.ey.com