VAT Italy 2024

Value-added tax (PTU) is a value-added tax, which is a tax on the increase in value of goods as a result of the production process or creation of services. VAT is an indirect tax, collected at each successive stage of trade in goods or services. VAT applies to both sellers and buyers of goods and services, as its value is added to the net value of the transaction.

VAT in Italy

The VAT or IVA (Imposta sul Valore Aggiunto) has been in force in Italy since 1972. The basic VAT rate in Italy is 22% and covers all products and services that are not covered by the reduced rates of 10%, 5% and 4% and the zero rate.

Italian VAT invoice requirements

VAT invoices in Italy must be issued on the day of delivery of goods and up to 15 days after the end of the month in which the delivery took place. VAT invoices in Italy must be kept for four years. VAT invoices in Italy must contain at least the following basic information:

• Date of issue
• Unique number
• Supplier’s VAT number
• Full supplier and customer addresses
• Full description of goods or services provided
• Details of the quantity of goods
• Delivery date (if different from the invoice date)
• The net value of the supply subject to taxation
• Applied VAT rates
• Amount of VAT broken down into rates
• Reference to the applicable law in which VAT is not charged
• Total gross invoice amount

In some cases, the invoice should include the details of the supplier’s tax representative. For transactions of less than EUR 100 it is possible to provide a simplified version of the invoice.

When to register for VAT in Italy?

Italy does not have a VAT registration threshold for non-resident businesses. Registration must be done before starting a taxable transaction.

As in other EU countries, businesses conducting distance selling in Italy are required to register for VAT purposes after exceeding the EUR 10,000 distance-selling threshold. In such a situation, it is also possible to register for the VAT-OSS system.

Additionally, foreign companies should register for VAT purposes in Italy if:

• They import goods to Italy (if the customer is VAT registered in Italy, the supplier does not have to charge Italian VAT);
• They buy and sell goods in Italy (if the supplier and customers are not Italian companies with VAT registration – reverse charge);
• They conduct intra-Community transactions (intra-Community acquisitions of goods and intra-Community deliveries of goods);
• They receive goods in the form of takeovers from other EU countries;
• They conduct online sales to individual customers (subject to the Italian distance selling registration threshold);
• They store goods in a consignment warehouse in Italy for deliveries in Italy to the rest of the EU;
• They charge entry fees to events or exhibitions in Italy;
• They conduct e-commerce transactions with Italian consumers.

Documents required to register for Italian VAT

If you want to register for VAT in Italy, you must provide the necessary documents, including a special declaration – Dichiarazione and Identificazione Diretta Ai Fini Iva Di Soggetto non residente – or a translated confirmation of entry in the company register in the country of identification.

Fiscal representative Italy

In addition, the registration of a company based outside the EU in Italy is carried out with the help of a tax representative. Therefore, in order to appoint such a representative in Italy, the appropriate power of attorney must also be provided.

If you want to learn more about how to register for VAT in Italy, check out our article – VAT registration Italy. And if you are interested in registering with One Stop Shop (OSS), we will also be happy to help you! Schedule a consultation and our specialists will take care of the rest.

VAT identification number in Italy

In Italy, there is no VAT threshold for the registration of non-resident economic entities. The registration must be done before the start of a taxable activity.

As in other EU countries, if the sale to Italy as part of the intra-Community distance delivery of goods exceeds EUR 10,000, the entrepreneur is obliged to settle VAT in Italy or under the VAT-OSS procedure.

All taxpayers are required to submit quarterly VAT returns (under the Comunicazione Liquidazioni Periodiche IVA) by the last day of the second month following the end of the accounting quarter. A quarterly VAT return can be made by taxpayers who in the previous year achieved a turnover of less than EUR 400,000 for companies providing services and EUR 700,000 for companies providing other economic activities.

The tax must be paid by the 16th day of the second month following each quarter. After exceeding the limits, taxpayers are obliged to settle accounts monthly. The tax must be paid by the 16th day of the second month following each quarter. The deadline for submitting annual VAT returns is 30 April of the year following that date.

Additionally, the entrepreneur should register VAT in Italy if their company:

• Imports goods to Italy (if the customer is registered for VAT in Italy, the supplier does not have to charge Italian VAT)
• Buys and sells goods in Italy (if the supplier and customers are not Italian companies with VAT registration – reverse charge)
• Delivers or accepts intra-Community supplies
• Receives goods in the form of acquisitions from other EU countries
• Run online sales to individual customers (subject to the Italian threshold for registration of distance selling)
• Stocks goods in a consignment warehouse in Italy for delivery in the rest of the EU
• Charges for admission to events or exhibitions in Italy
• Runs e-commerce transactions with Italian consumers

VAT taxpayer obligations in Italy

It should be remembered that when conducting business in Italy, in some situations, not only must you register for VAT, but also fulfill the obligations of a VAT payer, e.g. settle VAT or file declarations in this country. Failure to fulfill these obligations may result in penalties and sanctions, which is why you should take care of Italian VAT Compliance.

VAT declaration Italy – reporting period

Quarterly settlement of VAT in Italy

Taxpayers who have decided to register for Italian VAT must remember to fulfill the obligations of a VAT payer in Italy. These include, among others, filing VAT declarations in Italy on a quarterly or monthly basis.

Quarterly settlement of VAT (under Comunicazione Liquidazioni Periodiche IVA) may be made by taxpayers who achieved turnover of less than EUR 400,000 in the previous year as part of the provision of services and EUR 700,000 from other economic activities. Tax settled quarterly in Italy must be paid by the 16th day of the second month following each quarter.

Monthly VAT settlement in Italy

VAT taxpayers in Italy whose turnover from services exceeded EUR 400,000 or EUR 700,000 from other economic activities are required to settle monthly. In this case, the VAT return must be filed by the 16th day of the month following the settlement month.

Annual VAT declarations in Italy

The deadline for filing annual VAT declaration reports in Italy is April 30 of the year following the settlement period.

Penalties and VAT interest in Italy

The penalty for late payment of the Italian VAT due is the imposition of an additional 30% VAT. An interest fee of 2.5% per year is also charged. If the refund is delayed, the fines can reach over 240%!

Limit on mail-order sales in Italy

The mail-order sales limit for taxpayers in Italy is EUR 35,000.

Must read what is VAT-OSS? Changes to VAT settlements in the EU for online retailers

Intrastat in Italy

The address of the Italian tax office (Agenzia delle Entrate) is:
Rome, via Cristoforo Colombo n. 426 C/D – 00145

The Internet address is: https://www.agenziaentrate.gov.it/.
The office can be contacted by telephone: +39 0696668933

Want to register for VAT in Italy? >> Contact us