Once one of the most unfavorable destinations for art trading destinations due to high taxes and strict regulations, Italy will cut its VAT (VAT) on art from a punitive 22% to just 5% under a new regulation that will take effect this week. Its import tax will also drop from 10% to 5%, which could make Italy one of Europe's most attractive countries for buying and selling arts, at least from a tax perspective.
“Reduction is an important achievement of the art market,” said Milan's lawyer, Gruppo Apollo, the Italian Association of Art Stakeholders. Calabi had years of dialogue with Italian policymakers and believed that reforms would make the Italian art market more competitive by promoting the international circulation of Italian art in Italy. “The ultimate goal is to promote the global circulation of Italian art and culture.”
The Italian gallerist Marco Poggiali of Poggiali Galleria said the credit was attributed to the Minister of Culture Alessandro Giuli, the National Association of Modern and Contemporary Art Gallery (Angamc) and the Apollo Group, “they’ve solved a long-standing problem in the market: the company’s tax range is large compared to taxes in Europe and Europe. He hopes that the reduction marks the beginning of a cultural and market renaissance that will restore Italy to its place as it should be, “a leader like a historical leader.” ”
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José Graci of Mazzoleni Gallery noted that the reform was the result of years of work, involving a wide range of stakeholders in the arts sector. He told Observer, adding: “Special thanks to you for being Sirio Ortolani, president of Angamc, who has been a key point for us on this issue.” The industry is now awaiting the next regulatory step, and he hopes the implementation will be done by the fall.
Reduce the gradual progression of Italy with Germany and France
The measure is also a response to the EU-wide VAT reform outlined in Directive 2022/542, which gives member states greater flexibility in setting certain categories of goods (including art) at lower VAT rates. From January 1, Germany has reduced the VAT on art sales from 19% to 7%. Meanwhile, France's art VAT rate is 5.5%. “The adjustment of Italian VAT to 5% allows Italian industry professionals and collectors to operate within a competitive tax framework,” Elena Zaccarelli, senior expert at Christie’s Modern and Contemporary Art, told Observer.
Massimodecarlo's CFO Pietro Vallone called the change a “wise decision”. He believes that the reform will not only promote sales, but will also inspire a wider cultural ecosystem around contemporary art, encouraging Italian collections and creating new opportunities for young artists in the country. “This brings us back to the backdrop of fair competition with key European and international markets, especially France and Germany,” he said. “We must continue to move in this direction and I am pleased to note that the threshold for free circulation has been identified as the next goal.”
The reduction of VAT was ahead of a series of planned reforms aimed at improving the competitiveness of the Italian art market. Although Prime Minister Giorgia Meloni initially resisted the reduction of VAT, she faces pressure from the cultural sector. At the Miart Fair in Milan in April, several art dealers circulated an open letter signed by 600 artists warning that the risk of keeping high prices turned Italy into a “cultural desert.” Cardi Gallery's Nicolò Cardi believes that VAT has been reduced due to collective efforts throughout the Italian art field. “There is a strong unity and belief in our Italian identity in the art system,” he told Observer. “We should be proud of it – we have won a big battle that will have a strong and broad impact on the market.”
Report for 2021, Art: The Value of the Italian IndustryReleased by Nomisma in partnership with Italy's leading bank Intesa Sanpaolo, even before the pandemic, the Italian art market experienced a shocking contraction, with the number of art galleries steadily declining (now 1,618) (now 1,618) and antique dealers (1,637) (1,637) (1,637) (1,637) (1,637) (1,637) (1,637) (1,637) (1,637) (1,637) (1,637), largely due to sales and the country's standard vat vath of 22%, which is the highest level in Europe. After measuring the economic impact of art sales on Italy, the study found that the country's total turnover was 1.46 billion euros in 2019. Given the multiplier of 2.60, the resulting economic activity (covering direct and indirect suppliers, as well as household consumption) reduces the overall impact to €4 billion. While Italy's art market currently accounts for only 1% of the global total, nominees predict that the cuts could help the country's galleries, antique dealers and auction houses generate an additional 1.5 billion euros over the next three years. This, in turn, will promote a wider economy, including indirect suppliers and household spending – potentially reaching €4.2 billion.
Dealers and buyers face obstacles beyond VAT
Even at more favorable tax rates, Italy continued to enforce strict export regulations, resulting in long-standing bureaucratic procedures that discouraged international art trade. Any artwork over the age of 70 still requires a formal export license, worth more than €13,500. Even the works of artists under the age of 70 must register €13,500 through the SUE system (Sistema Informativo Uffici Esportazione), involving submission of photos and detailed descriptions, and the export office can still be considered a work with great cultural interest.
Similar import and export restrictions (and all the same legal, administrative and economic burdens) will be reflected in the EU Regulations (EU) 2019/880 (EU), which will come into effect on June 28, requiring auction rooms, galleries and antique dealers to provide detailed supply rooms throughout the Bloc to provide cultural goods beyond 200 years to groom out the scope beyond 200 years to groom out the amount of cultural beyond 200 years to groom out people of all ages to groom out the boundaries of all ages to introduce significant administrative challenges to the European art market, especially in the field of antiques and decorative arts.
According to the Nomination Report, Italy's leading art fairs have a direct economic impact of €68.1 million in 2019, consisting of the Spring and Autumn Edition of Parma, the Spring and Autumn Edition of Milan, Miart, Miart, Bologna, Arte Fiera, in Florence, in Florence, Artissima, in Florence, in Florence, in Florence and in Biaf – this is the ancient Art Art Art. However, among the major challenges identified by Italian dealers, they are expanding their customer base to attract foreign buyers (72%), establishing new business relationships (69%), and not surprised here – echoing more favorable tax rates in other European countries and non-European markets (such as the UK).
Whether the production cuts, as some have suggested, will transform cities like Milan into major art hubs in Europe, and whether Italian expos like Miart and Artissima can be rebuilt as real international events remains to be seen. In 2024, Artissima has 189 galleries from 34 countries on four continents, including 37 first-time participants, including a new perspective from the Global South. The latest version of Miart in April 2025 has 179 galleries in 30 countries on five continents. However, according to many collectors and industry professionals, Italy’s two major expos have become more provincial since the pandemic, with fewer international collectors traveling to the country (the Venice Biennale is a notable exception).
