The world of art in Italy celebrates a long-awaited victory: the reduction of VAT on works of art to 5%. With the approval of the article 8 of the DL Omnibus by the Council of Ministers, which took place last June 20, 2025, Italy now positions itself as the European country with the lowest rate for the sale and importation of works of art.
A decision that not only excites gallery owners and collectors, but that promises to revive the vitality of the entire national artistic sector.
The European context: Italy at the forefront
The competition among the main European art markets has intensified in recent years. France and Germany had already announced a reduction of VAT to 5.5% and 7%, respectively, effective from January 1, 2025. With the new measure, Italy surpasses its competitors, becoming the reference point for those who want to invest in art in the Old Continent. A strategic step that aims to restore Italian competitiveness and to foster the growth of exchanges in the sector.
What is IVA and how it works in the art market
To fully understand the scope of this reform, it is useful to remember that VAT (Value Added Tax) is a tax applied on the supply of goods and the provision of services, as well as on imports. In Italy, the standard rate is set at 22%, but there are reduced rates for specific categories of goods and services.
In the artistic sector, until today, two rates were applied: 22% for sales made by professional intermediaries such as gallerie and auction houses, and 10% for works sold directly by the artist or their heirs to the collector, as well as for imports. With the new regulation, the rate drops to 5% for all transfers and imports of works of art, bringing a substantial change in market dynamics.
Why the reduction of VAT is possible only now
The possibility of lowering VAT on works of art derives from the EU Directive 2022/542, which allows member states to introduce new reduced rates for specific categories of goods and services, including, indeed, works of art, collectibles, and antiques. Each state can apply reduced rates to a maximum of 24 categories among the 29 provided by the European legislation.
This regulatory opening has allowed Italy to intervene in a targeted manner, recognizing the cultural and social value of artistic production and facilitating access to the market not only for collectors, but also for public institutions and, indirectly, for all operators in the supply chain.
The expected benefits for the art system
The reduction of VAT represents an effective lever to stimulate exchanges and the vitality of the art market. With more competitive final prices, collectors will be encouraged to purchase, generating an increase in sales for galleries. This chain effect could translate into greater opportunities for artists as well, who would see the demand for their works grow.
An impact on the entire art supply chain, but not for everyone in the same way
Despite the general enthusiasm, it is important to emphasize that the measure primarily benefits galleries and collectors, without direct and immediate impacts on artists or other professionals such as journalists, curators, and service staff. However, in a healthy system, the increase in revenue for galleries could translate into better working conditions for assistants, interns, and other operators who are often underpaid or not adequately recognized.
The art sector is characterized by a pyramidal structure, in which the gallerist is the main beneficiary of tax breaks. Many essential figures, such as transporters, artisans, maintenance workers, and journalists, often remain on the margins of the system, penalized not only by the VAT rate but also by a lack of economic recognition proportional to the service offered. The hope is that the new measure can, over time, promote a more equitable redistribution of resources and greater cohesion among the different professions in the sector.
A sector, that of art in Italy, still perceived as elitist
From the analysis of the reactions, a widespread perception emerges: the art market continues to be seen as an exclusive world, reserved for those with a certain income profile. In fact, the reduction of VAT, whether at 5% or 22%, does not change the target of the exchanges, but it can contribute to making the market more accessible and dynamic, especially for public institutions and for those who work in cultural promotion.
Beyond the numbers and percentages, the VAT reform represents a recognition of the value of creativity and cultural production. The focus should also shift to employment indicators, to assess the real impact of the measure on the sustainability of artistic and cultural professions.
In recent years, the sector has experienced a phase of recomposition and solidarity, seeking to overcome internal divisions and assert its role in society. The reduction of VAT can be seen as a step towards greater cohesion and towards the creation of real and sustainable opportunities for all those who work in art.
A new scenario for art in Italy thanks to the new VAT rate
The reduction of VAT on works of art to 5% marks a historic turning point for the Italian market, bringing the country back to the center of the European scene and offering new growth prospects. On one hand, the measure mainly favors galleries and collectors, while on the other hand, it represents an opportunity to rethink the entire system, promoting greater inclusivity and recognizing the value of all the professionals involved.
The success of this reform will depend on the ability of the sector to translate the tax benefits into better working conditions, greater transparency, and new opportunities for artists, operators, and institutions. Only in this way can Italy consolidate its role as a leader in the European art market, transforming a tax measure into a catalyst for cultural and economic development.
As expert in digital marketing, Amelia began working in the fintech sector in 2014 after writing her thesis on Bitcoin technology. Previously author for several international crypto-related magazines and CMO at Eidoo. She is now the co-founder and editor-in-chief of The Cryptonomist and Econique.
She is also a marketing teacher at Digital Coach in Milan and she published a book about NFTs for the Italian publishing house Mondadori, while she is also helping artists and company to entering in the sector. As advisor, Amelia is also involved in metaverse-related project such as The Nemesis and OVER.
