Italy Tax Agency Clarifies VAT Rate for Instrumental Concerts

The Italian Revenue Agency Feb. 20 issued Letter No. 43/2025, clarifying the application of the reduced 10 percent VAT rate for instrumental concerts. The taxpayer, a foundation, was organizing a virtual reality event for which the audience would use virtual reality headsets to experience a deceased composer’s musical performance in an auditorium. The concert would have synchronized physical, artistic, lighting, and musical elements. The taxpayer sought clarification as to whether the concert would qualify as an instrumental concert, for which the 10 percent VAT ate would apply to the ticket sales instead of the standard 22 percent rate. The Tax ...