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In a landmark decision, Italy will reduce its VAT on art sales from 22%—the highest in Europe—to just 5%, the lowest rate in the EU. Announced by Culture Minister Alessandro Giuli following a cabinet meeting on June 20, the reform is expected to take effect this week pending parliamentary approval within 60 days.
Sirio Ortolani, president of ANGAMC and vice president of the Apollo Group, hailed the change as a “momentous turning point” that will position Italy as a major international hub for galleries and art fairs. The decision reverses the previous hardline stance of Giorgia Meloni’s government and comes after sustained lobbying by prominent artists and art market figures concerned that the high VAT was turning Italy into a “cultural desert.”
Italy’s new 5% rate undercuts France (5.5%) and Germany (7%)—both of which lowered VAT rates in response to earlier EU-wide tax harmonization efforts. Notably, the reduced VAT may also apply to art imports, potentially transforming Italy into a highly competitive trading center for international art dealers.
Mauro Mattei, Milan tax advisor and collector, notes that the industry awaits the official decree text to fully assess the reform’s impact. The VAT cut is part of broader cultural sector reforms, including simplified export licensing for cultural goods over 50 years old and digital initiatives like online registries for public cultural sites, led by Culture Commission president Federico Mollicone.
A recent study by Nomisma and Intesa Sanpaolo forecasts that the VAT cut could boost Italian galleries’, antique dealers’, and auction houses’ turnover to €1.5 billion within three years, generating an additional €4.2 billion for Italy’s economy.
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