In Italy, a far-reaching tax measure is causing a sigh of relief in the art industry. The government has decided to reduce VAT on the trade in art objects and antiques from 22% to 5% in future. The move is intended to improve the competitiveness of Italian galleries, auction houses and dealers compared to other European markets, where lower tax rates often apply.
The industry had criticized for years that the high tax burden deterred international buyers and shifted the sale of artworks abroad. The government hopes that the reduction will lead to stronger domestic demand, new investments and a boost for art fairs and cultural events. Experts also expect the measure to encourage interest among younger collectors and position Italian artists better on the global art market.
In addition to the economic benefits, the reform is also seen as a signal for the protection and promotion of cultural heritage. Art dealers and industry associations speak of an important impulse that underlines Italy's role as an art nation.
