IVA
Also known as: VAT, value added tax
IVA is Italy's value added tax, governed by DPR 633/1972. The standard rate is 22%, with reduced rates of 10%, 5% and 4% on specific goods and services. Most businesses charge IVA on sales, deduct it on purchases, and remit the difference periodically.1
What this means for you
Under the forfettario you don't charge or reclaim IVA at all — a major simplification. Under the regime ordinario you do, which means periodic IVA filings. Cross-border B2B sales often use the reverse charge instead.
Sources
Every figure on this page is grounded in primary sources — the same standard as the TaxCompass chat. This is sourced orientation, not tax advice.