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Italian galleries celebrate as Italy slashes VAT on art sales from 22 to 5 per cent.
Italy’s government has slashed the value added tax (VAT) on art sales from 22 per cent to 5 per cent after lobbying by Italian artists, galleries and auction houses.
The move, which aims to stimulate the Italian art market and improve its competitiveness within Europe, will see Italy go from having the highest VAT rate on art in the EU to having the lowest.
Italy’s culture minister Alessandro Giuli said in a statement that the tax break would enhance “the entire art ecosystem, one of the most vital bastions of our cultural identity”.
The culture ministry noted that a recent study by consulting and market research company Nomisma found that the Italian art market had suffered from a high tax system, facing competition from other European countries with preferential VAT regimes for the art sector.
The report by Nomisma concluded that the reduction of VAT on art in Italy could see the country’s art sector generate €1.5 billion over three years, with an “overall economic impact estimated at €4.2 billion”.
The EU countries with the next lowest VAT on art sales are Germany and France, with 7 per cent and 5.5 per cent respectively.
Photo credit: Antonello Marangi / Shutterstock.com.
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