Value Added Tax (VAT)
Plain English
It's the Italian VAT, added to most goods and services. The standard rate is 22%, with reduced rates of 10%, 5%, and 4% for specific categories. End consumers carry the cost. Businesses charge and reclaim it through their VAT returns.
Why it matters
If you run a business with a normal VAT regime, you charge IVA on invoices and pay or reclaim the difference periodically. Freelancers in the regime forfettario don\'t charge IVA at all.
Common confusion
Receipts and invoices often show the price with and without IVA. When you compare prices between businesses (especially with international clients), be clear about whether quotes include it.
Official source
Agenzia delle Entrate