VAT Breakthrough for Art in Italy: 5% Reshapes the Global Market

As of July 1, 2025, Italy introduced a single VAT rate of 5% for all supplies and imports of works of art, antiques, and collectors’ items. This historic alignment with EU Directive 2022/542 eliminates the previously detrimental 22% rate for galleries and dealers, significantly boosting the Italian market's competitiveness against hubs like Germany and Switzerland.

The new legislation creates a uniform and more transparent system, unifying the rates that were previously fragmented (22% for supplies by galleries and dealers, 10% for direct sales by living artists or their heirs, and 10% for imports). For operators, the choice between the new ordinary 5% VAT regime (with the right to deduction) and the Margin Scheme is now crucial.

Our Firm in Lugano, specializing in international law and taxation, offers tailor-made strategic consulting to optimize the selection of the most advantageous tax regime for your investments and cross-border operations in the art market.