VAT registration Italy

VAT in Italy

The standard VAT rate in Italy stands at 22%, alongside two reduced VAT rates, one super-reduced VAT rate, and a zero rate.

The reduced VAT rates in Italy are 10% and 5%, while the super-reduced rate is 4%.

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.

When is it mandatory to register for VAT in 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 sales to Italian customers, 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.

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.

Documents required for VAT registration in Italy

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.

VAT registration in Italy - the process

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

Upon successfully completing the VAT registration process in Italy, you will be assigned an Italian VAT number, which comprises 11 digits and is preceded by the prefix ‘IT’.

VAT obligations in Italy

After successfully registering for VAT in Italy, it’s essential to remember that VAT payers have specific obligations to fulfil, including applying Italian VAT rates to their transactions with Italian customers and ensuring the proper settlement of VAT in Italy.

Moreover, 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.

VAT registration in Italy - summary

VAT registration in Italy, similar to other EU countries, holds significant importance for businesses, especially those involved in cross-border trade. The registration process entails understanding Italy’s specific tax regulations and providing the relevant documents to the Italian tax authority, the Agenzia delle Entrate.

Once successfully registered, taxpayers must fulfil their obligations by submitting Italian VAT returns 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.