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Italian VAT – Rates & Registration

If a company not established in Italy is providing ‘taxable supplies’ of goods or services in Italy, it may have to obtain a non-resident VAT registration. In accordance with the EU VAT Directive, foreign traders are legally obligated to register for VAT in certain circumstances in order to report taxable transactions and declare VAT that must be charged.

It is important that all businesses with any commercial activity in Italy assess their compliance obligations and register prior to commencing taxable transactions if applicable.

What you need to know

There are various scenarios that would trigger an obligation to register for VAT in Italy. Some of the most common examples are:

  • Importing goods into Italy from outside the European Union
  • Buying and selling goods in Italy (excluding domestic reverse charge)
  • Selling goods from Italy which are delivered to customers outside of Italy (business or private customers)
  • Acquiring goods in Italy from another EU country (Intra-community acquisitions)
  • Holding inventory in Italy for sale, distribution or consignment
  • E-commerce sales of goods to consumers, subject to Distance Selling VAT registration thresholds
  • Organising events in Italy where attendees or delegates must pay admission

If you are currently, or plan to conduct any of the above (or similar) transactions in Italy, you should contact us immediately for a complimentary consultation.

Italian VAT Rates, Formats & Thresholds

VAT Rates VAT Number Format Distance Selling Threshold Intrastat Threshold
22% (Standard) IT12345678901 € 35,000 N/A (Arrivals)
4/5/10% (Reduced) N/A (Dispatches)
VAT return periods

Returns annually; VAT payments monthly or quarterly

Annual returns

Yes

EC Sales Lists frequency

Monthly or quarterly

EC purchase lists

Yes

Other reporting requirements

Yes, please contact us for details

Extended reverse charge

The supply of goods and services provided by a non-established to a VAT registered customer in Italy are subject to the reverse charge and the customer accounts for the VAT. Please contact us if you would like details of how the extended reverse charge applies in Italy.

Fiscal Representation

A business established in a country outside the EU must appoint a tax representative to register for VAT in Italy.

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