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VAT registration Italy
- Last update: 23.02.2024
- Published: 24.07.2023
- Read in: 5 min
Having a firm grasp of VAT rules and regulations in different countries is crucial for successful business ventures across international markets. In Italy, just like other EU countries, specific VAT rules and rates apply. Additionally, similar to other nations, in Italy VAT registration process has its own distinct, which is necessary when engaging in the sales and supply of goods into the country or providing taxable services.
Hence, comprehending these aspects and carrying out VAT registration is vital for conducting business in Italy effectively and avoiding VAT-related penalties due to non-compliance. Just like in the UE member states, also in Italy VAT registration is the initial step in this entire process, and the article will delve into the details of this essential procedure.
From the following article you will find out about:
- What are the applicable VAT rates in Italy?
- What is the source of Italian VAT procedures and VAT rules Italy has?
- When is VAT registration Italy necessary?
- What is the VAT registration threshold Italy?
- How to register for Italian VAT and what do the Italian VAT registration procedures look like?
- What is the required Italian VAT documentati
- What is the format of valid Italian VAT number?
- What obligations arise after registering for VAT in Italy?
VAT rates in Italy
Before describing the process of applying for VAT Italy, let’s spare a moment to check the Italian VAT rates.
The standard VAT rate Italy has stands at 22%. Moreover there is one reduced VAT rate Italy introduced standing at 10% and the second one at 5%. Additionaly, there is one super-reduced VAT rate at 4%, and a zero rate.
For detailed information on the specific goods and services falling under these VAT rates, refer to our article – VAT Italy 2023. Now, without further ado, let’s now delve into the topic of VAT registration in Italy.
VAT rules Italy
Italian VAT rules and Italian VAT procedures are described in the Italian VAT Decree, known also as Decreto IVA.
When is it mandatory to register for VAT Italy?
Italian VAT plays a vital role in Italy’s economic system, and its registration follows similar requirements to other EU countries. You must register for VAT in Italy under the following circumstances:
- When exporting and importing goods to and from third countries.
- When conducting the sales of goods and services in Italy.
- When warehousing goods in Italy and dispatching them to recipients in other EU member states.
- Importing goods into Italy from other EU countries.
- Engaging in distance intra-Community selling into Italy, and exceeding a total value of €10,000.
It’s important to note that as of 1st July 2021, the intra-Community distance sales limit applies to all the total sales of goods and services by a company to private buyers from other EU countries. If this limit is exceeded, VAT settlement must be done locally through prior VAT registration or using the special VAT OSS procedure. Also note, that since that date, there is no longer VAT registration threshold Italy used to have. The intra community distance sales limit applies to the whole sales one conducts within the EU.
If you require assistance with any of these processes, simply book a free consultation with us, and our VAT Compliance specialists will take care of your VAT registration in Italy, the UK, or any other EU country based on your specific needs.
For further information, you can explore our article on VAT in Italy. Now, let’s proceed to explore the topic of VAT registration.
Italian VAT registration - documentation required
During the VAT registration process in Italy, it is essential to submit specific documents to the tax authorities, which comprise:
- The memorandum of association.
- Confirmation of entry in the company register.
- Statements: Dichiarazione and Identificazione Diretta Ai Fini Iva Di Soggetto non residente.
It’s important to highlight, the first two documents require a translation into Italian.
Italian VAT registration foreign companies from outside the EU – Tax representation and fiscal representation
It’s essential to note, that non-resident entities from outside of the EU, have to provide the power of attorney, appointing the tax representative. It’s also pivotal not to mistake it with the fiscal representation, as these are 2 different terms. Fiscal representation refers to a fiscal representative service that is used to represent the EU-resident companies when it comes to the VAT matters, and tax representation refers to similar service for non-resident entities.
VAT registration process Italy - How to apply for VAT number?
In Italy, foreign entities can complete their VAT registration through the mail, and the application is sent to the local tax office, which is known as the Agenzia delle Entrate.
It is important to highlight that non-EU companies seeking VAT registration and accounting for VAT in Italy are required to have a tax representative.
The Italian tax office
To apply for Italian VAT, you should direct your applications to the mentioned office, the Agenzia delle Entrate, at the following address: Rome, via Cristoforo Colombo n. 426 C/D – 00145.
For further details, additional information can be found at: https://www.agenziaentrate.gov.it/, and you can also contact the office by phone at +39 0696668933.
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Italian VAT number format - Value Added Tax identification number
If you want to get VAT number in Italy (also known as Italian VAT code), it’s worth knowing what is looks like.
Upon successfully completing the VAT registration process in Italy, you will be assigned a valid Italian VAT number, which comprises 11 digits and is preceded by the prefix ‘IT’.
VAT obligations Italy
After successfully completing VAT registration Italy, it’s essential to remember that there are some VAT obligations foreign companies have to fulfil, including applying Italian VAT rates to their transactions with Italian customers and ensuring the proper settlement of VAT in Italy.
VAT reporting obligations Italy
In Italy, a VAT payer is required to submit VAT returns on a quarterly basis.
However, the deadline for filing quarterly VAT returns is the 16th day of the second month following the end of the accounting quarter. For further insights into VAT returns in Italy and beyond, please refer to our article – VAT Italy 2023.
Italy Guide to VAT registration summary
VAT registration in Italy, similar to other EU countries, holds significant importance for businesses, especially those involved in cross-border trade. The Italian registration process entails understanding Italy’s specific tax regulations and providing the relevant documents to the tax authorities Italy – the Agenzia delle Entrate.
Once successfully registered, taxpayers must fulfil their obligations by submitting periodic VAT returns Italy requires, and adhering to the applicable VAT rates on taxable transactions, in line with the national regulations.
Effective VAT registration in Italy is vital to avoid penalties and fines and to conduct business operations smoothly within the country. If you require assistance, our team is ready to handle the process for you. Simply schedule a free consultation, inform us of your needs, and our VAT Compliance specialists will handle everything. Additionally, if necessary, we can also take care of your settlements, declarations, and address any concerns related to VAT OSS and VAT EU.