Italian Senate Bill Proposes Tax Cuts and Simplified Art Market Rules

On June 28, 2023, Senator Roberto Marti, president of the Senate's Public Education and Cultural Heritage Commission, introduced a bill aimed at streamlining procedures and offering tax incentives for the circulation of cultural goods in Italy. The stated goal is to revitalize the Italian art ecosystem and enable local art professionals to compete with their European counterparts, including through VAT reductions. The bill recognizes art and antiques trade as a strategic sector for Italy, citing an annual economic impact of nearly €4 billion and almost 40,000 jobs (data from Nomisma Intesa Sanpaolo). It proposes amendments to the Cultural Heritage Code to simplify export rules and reduce VAT. Key measures include raising the age threshold for scientific and technical heritage items requiring export authorization from 50 to 70 years, and setting fixed timelines for issuing certificates of free circulation. On the fiscal side, the bill leverages EU Directive 2022/542 to introduce reduced VAT rates: exemption for sales up to €20,000 of art, antiques, and collectibles imported and sold by the author or their heirs; and a VAT reduction from 22% to 10% for similar items under €20,000 sold by other parties. The bill now awaits parliamentary committee review and floor approval.