Municipal income tax (Addizionale Comunale)

[aburaihan66]

There is one more income tax to pay as an individual in Italy, the municipal tax. Known as Addizionale Comunale IRPEF, it is set by local councils and varies depending on the municipality where you live . Rates range from 0.1% to 0.9% of taxable income . Its purpose is to finance municipal services such as public lighting, urban transport and waste management.

Another tax in Italy that you will notice in your cayman islands phone number library daily life is the Value Added Tax (VAT), known as Imposta sul Valore Aggiunto (IVA). It is an indirect tax that is applied to the consumption of goods and services. It is already included in the price of most of the products you buy, from food and clothing to technology or a simple meal at a restaurant.

VAT is one of the main sources of income for the Italian State and varies according to the type of product or service . Compared to the percentage in other European countries, 22% may seem a bit high. However, it is still below countries such as Hungary, which has 27%. Or Denmark and Sweden, where 25% is applied. Let's look at the VAT rates in force in Italy:

22% : standard rate for general products and services (clothing, technology, transportation, etc.).
10% : reduced rate, applied to hospitality, public transport and some cultural services.
5% : super-reduced rate for certain essential foods and social services.
4% : specific rate for basic foods, books and other products considered essential.
Imagine you buy a laptop in Italy with a base price of 1,000 Euros. With 22% VAT, the final cost will be 1,220 Euros. On the other hand, if you buy a book for 20 Euros, the reduced 4% VAT will mean that you only pay 20.80 Euros in total.