5% VAT on art: miracle for the art world in Italy

From June 20, 2025, something has changed in the Italian art landscape. After years of unfair competition with other European countries, a long-awaited breakthrough has arrived: VAT on works of art has been reduced from 22% to 5%.

A powerful signal that opens new possibilities — not only for galleries and collectors, but especially for artists who sell their works directly.

Where does this change come from?

The VAT reduction is established in Article 8 of the Omnibus Decree-Law (D.L. 132/2025), which transposes the European Directive (EU 2022/542) aimed at supporting cultural goods and services. This time, Italy has chosen to seize the opportunity.

Behind this shift is also the work of Gruppo Apollo, a coalition of some of the most active stakeholders in the Italian art market — galleries, auction houses, and professionals across the sector.

What is the goal?

• To align with Europe, where art has long benefited from reduced VAT rates (France 5.5%, Germany 7%, Spain 10%)

• To make the Italian art market more competitive, both domestically and internationally

• To boost sales, especially in the primary market (where artists sell directly without intermediaries)

  
  

According to an estimate by Nomisma, this reform could generate up to €4 billion in economic impact — a figure that speaks for itself.

What changes for artists?

If you are an artist operating under the standard VAT regime (not a flat-rate scheme) and you sell your own works, you can now apply the 5% VAT rate.

Until yesterday:

• Direct sales: 10% VAT

• Sales through intermediaries (galleries, dealers): 22% VAT

  
  

From now on:

• A flat 5% VAT rate, whether you sell on your own or through a gallery or auction house

What does this mean in practice?

• Lower tax burden: on a €1,000 sale, VAT drops from €100 to €50

• Greater competitiveness: you can lower your prices or maintain them and retain more profit

  
  

Practical example:

• Before: €1,000 + 10% VAT = €1,100 for the client

• Now: €1,000 + 5% VAT = €1,050 for the client

The client saves, you earn more — a win-win.

What if you sell through a gallery?

Galleries can now apply the 5% VAT rate as well — both on the artworks and their commissions. This creates a virtuous cycle, encouraging more sustainable and equitable collaborations between artists and intermediaries.

What about artists on a flat-rate scheme?

If you're under the flat-rate tax regime, nothing changes: you still don’t apply VAT on your sales. However, you might still benefit indirectly, for example by collaborating with galleries or institutions that now operate within a more favorable tax framework.

Why is this measure so important?

Because it restores economic dignity to art. Because it marks the beginning of a new era — one in which being an artist in Italy is no longer a fiscal obstacle course, but a profession recognized and supported by institutions. This is more than just a tax cut: it’s a statement. A call to reimagine the role of art in society — not only as intangible heritage, but as a cultural, economic, and identity-building resource.