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Italy rolls over domestic gas VAT cut to 5% until 30 September 2022

Third extension of gas VAT cuts until 30 September 2022 as inflation hits 8% in June 2022

Italy has extended for the third time the temporary cut in Value Added Tax rate on domestic and industrial use gas until 30 September 2022. Italian inflation has risen to 8% in June 2022, up from 6.8% in March. This is the highest level in over 30 years.

The cut was initially introduced between October and December 2021, and then rolled over to January to March at the start of 2022. And a further time to 30 June 2022. Many other EU states cutting VAT on fuel. Belgium has in the past cut the VAT rate to 6% on energy fuel.

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2022 Budget responds to spiralling inflation with energy VAT cut and other measures

Italy had  approved its 2022 budget which included the following measures:

  • Gas for domestic and industrial production are cut to 5% between the end of September 2022. This is a continuation of the cut for October to December 2021. This latest measure not pushes this out to June 2022.
  • The plastic tax and sugar taxes implementations are delayed until 2023
  • Feminine hygiene products (tampons) are cut to 10% VAT rate

In April 2022, EU states passed new reduced EU VAT rate setting freedoms .

Learn more about Italian VAT in our country guide.

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