VAT on books
VAT on books in Italy
Italy charges its lowest VAT rate, 4%, on books. Ebooks have shared it since 2015, and the test is simple to state. A book is any publication with an ISBN or ISSN, on any physical support or sent electronically, as long as it really is a book. The standard rate is 22%.
This is general information, not tax advice. Rates and rules change, and your own situation matters. Check with Agenzia delle Entrate, Italy's revenue agency or an accountant before you decide.
The rates
| What you sell | Rate | Type | Source |
|---|---|---|---|
| Printed books | 4% | Super-reduced rate | Agenzia delle Entrate, Risoluzione 120/2017 |
| EbooksSince 2015, for publications with an ISBN or ISSN. | 4% | Super-reduced rate | Agenzia delle Entrate, Risoluzione 120/2017 |
| Most other goods and services | 22% | Standard rate | Your Europe, VAT rates |
What to know about Italy
- The 2015 Stability Law gave ebooks the 4% rate, and the 2016 budget widened it to books on any physical support. The test is a publication identified by an ISBN or ISSN. Risoluzione 120/2017
- An ISBN is needed but not enough on its own. The product must also have the typical features of a book. So if you sell your ebook direct to Italian readers, give it an ISBN. Risoluzione 120/2017
- A CD or other medium that reproduces a printed book is taxed at 4%. The tax agency has not ruled on downloaded audiobooks, so the table leaves that rate out. Agenzia delle Entrate, Risposta 5/2024
- Italian publishers use a special regime where VAT is paid once, by the publisher, on the cover price of copies sold. That is for Italian publishers. It is not how a direct sale from your own store works. Risposta 5/2024
How EU VAT works when a reader in Italy buys from you
Ebooks and audiobooks: the reader’s country
A download sold to a reader, not a business, is taxed where the reader lives. So a reader in Italy pays the rate for Italy, wherever you are. European Commission, place of taxation.
The €10,000 threshold
If your business is based in just one EU country, and your sales to readers in other EU countries stay at or under €10,000 a year (this year and last), you can charge your own country’s VAT instead. Digital sales and shipped print books count together. Sellers based outside the EU get no threshold for digital sales: VAT is due from the first sale. Commission OSS guide.
The One-Stop Shop (OSS)
Instead of registering in every country, you register once and file one return every quarter that covers all your EU sales. Your home tax office passes the VAT on to each country. EU-based sellers use the Union scheme. Sellers outside the EU use the non-Union scheme for ebooks and audiobooks. EU One-Stop Shop. OSS in plain words.
Paperbacks and hardcovers sent across a border
A printed book shipped from one EU country to a reader in another is a distance sale. It falls under the same €10,000 threshold. Over it, the rate is the one where the parcel ends up, here the rate for printed books in Italy, and it goes on the same OSS return. Commission OSS guide.
Who charges the VAT when you sell on Lanternbee
You do. Each author connects their own Stripe account, so you are the seller and the money goes straight to you. At checkout, Stripe Tax works out the right rate for where the reader is and adds it to the order. It collects tax in the places where you have added a tax registration in Stripe, so you still register where you need to, file the returns and pay what you collected. Stripe on tax registrations.
We plan to take EU VAT on ebooks off your hands by acting as the merchant of record for digital editions. That is planned, not live. Today, you are the seller.
Questions authors ask about Italy
Does my ebook need an ISBN to get 4% in Italy?
Yes. Italy defines a book for this rate as a publication with an ISBN or ISSN, and it must also look and work like a book. Without an ISBN, an ebook is likely to pay 22%.
What about audiobooks?
A CD that reproduces a printed book gets 4%. For downloads and streams we found no ruling, so check with the Agenzia delle Entrate or an accountant.
Is the 4% rate the same as Italy's reduced rate?
No. Italy has reduced rates of 5% and 10%, and a separate super-reduced 4% that covers books, newspapers and some basic goods.