Italian VAT- Imposta sul Valore Aggiunto

Should you register for Italian VAT

Where foreign, non-resident companies are providing goods or services, then they may face the requirement to register with the tax authorities as an Italian tax payer.

VAT-IVA- btw- omzetbelasting_

The common situations where this is required includes:

Importing goods into Italy, although if the client is already Italian VAT registered then they supplier may not charge Italian VAT

  • Buying and selling goods within Italy if the supplier and customers are not Italian company with a VAT registration (reverse charge applies).
  • Provision or acceptance of intra-community supplies, or receipt of goods as acquisitions from other EU states.
  • Sales to individual consumers over the internet, subject to the Italian distance selling registration threshold.
  • Storing goods in a consignment warehouse in Italy for supplies in Italy of the rest of the EU.
  • Charging admission fees to live events or exhibitions in Italy.
  • E-commerce transactions with Italian consumers on the web.

Since the 2010 EU VAT Package, there are almost no circumstances where a non-resident VAT registration is required for providing services in Italy. Instead, the Italian customer records the transaction under the reverse charge mechanism.

Italian VAT compliance

There are detailed rules controlling the recording and processing of Italian transactions. These include guidelines on:

  • Italian invoice requirements, including dedicated invoice numbering
  • foreign currency reporting and translation
  • correcting errors from prior returns
  • credit notes and corrections
  • what accounting records must be maintained.

In Italy, there are strict rules on the layout and format of VAT records to be kept by companies or their tax agents.

Italian VAT rates

The standard VAT rate in Italy is 22%; there are reduced VAT rates of 10% and 4%.  There are many variations to the rates above, including exempt taxable supplies. Please contact us to learn more.

Italian VAT returns

Companies with an Italian VAT number must submit periodic payments. Payments are generally submitted monthly in Italy.
Italy has one of the harshest regimes for VAT non-compliance, and companies should ensure they are properly registered before they start trading.
There is also a requirement to submit two annual returns in Italy in the following year.

Where can I get more information

If you do need to VAT register contact VAT Point Europe and we guide you further to be VAT compliant in Italy.

On this page we will ad further information about VAT in Italy in the near future