Italy is preparing to cut the VAT rate on art sales from 22% to 5%, responding to mounting pressure from the national art market and increased competition from other EU Member States with lower VAT rates on art.
In April 2025, Italian artists and dealers issued a strong appeal to Prime Minister Giorgia Meloni, warning that the 22% VAT rate on art sales was creating an “alarming situation” for cultural professionals and contributing to Italy’s decline as a major art trading hub. An industry letter described the impact as transforming the country into a “cultural desert.”
With Italy’s move to 5%, it joins the ranks of EU countries using VAT policy as a lever to stimulate the domestic art trade and counterbalance the loss of the margin scheme. This shift is expected to revitalize the Italian art market and restore its competitiveness across Europe.