Italy is contemplating a significant reduction in value-added tax (VAT) rates on art imports, aiming to establish itself as a major player in the global art market. Currently, Italy applies a 10% VAT rate on art imports, higher than rates in France, Belgium, and Germany. The proposed change aligns with a revised European Commission directive that allows member states to lower VAT on art imports to a minimum of 5%. Italy's Ministry of Economy and Finance has not yet confirmed whether it will adopt the changes, but industry experts believe that reducing VAT on art imports to 5.5% could boost the country's competitiveness. France, which currently holds 7% of the global art market, may face challenges if it doesn't continue applying reduced VAT to art. Italy's decision could have a significant impact on the art market landscape.