Whether you’re a European or non-European company, establishing certain activities in Italy may mean you need to register for VAT. You can use a fiscal representative or tax advisor to draw up your VAT, Intrastat and ESL returns with total peace of mind in Italy.
If you deal with companies in Italy, you may be able to claim a Italian VAT refund.
In this VAT guide, we have brought together the specific features of the Italian regulations, which interact with the harmonized framework within the European Union.presented in our guide to intra-Community VAT obligations.
With EASYTAX, be 100% VAT compliant, always.
Basic information |
|
|---|---|
| EU membership | 1957 |
| ISO code | IT |
| VAT introduced in Italy | 1973 |
| VAT name in Italy | Imposta sul valore aggiunto (IVA) |
| VAT ID format in Italy | IT99999999999 |
| Territories with special status in Italy | Livigno, Campione d’Italia, Lugano, |
VAT rates in Italy |
|
| Standard VAT rate | 22 % |
| Reduced VAT rate (1) | 10 % |
| Reduced VAT rate (2) | 5 % |
| Super reduced VAT rate | 4 % |
| VAT parking rate | n/a |
| Zero VAT rate | yes |
Thresholds triggering VAT reporting obligations in Italy |
|
|---|---|
| Intrastat threshold at introduction | EUR 350,000 |
| Intrastat threshold on dispatch | 0 EUR |
| Distance selling threshold | As of 1st July 2021, the threshold is EUR 10,000 for all intra-Community distance sales. |
Reporting frequency in Italy |
|---|
| Intrastat return | Quarterly depending on threshold |
|---|---|
| EC Sales List (ESL) return | monthly according to threshold/conditions, quarterly depending on threshold/conditions |
| VAT returns | quarterly , annually |
|---|---|
| Reporting currency | EUR |
VAT-related penalties in Italy |
|
| Failure to file a VAT return | A fine between 250 and 2000 euros. In case of delay in filing the annual return, 120% to 240% of the due VAT with a minimum of 250 euros. |
| Late payment of VAT | Penalties are between 0.1% and 3.75% per day of delay. |
| Failure to report ESL/DEB | A fine of 250 to 2000 euros per ESL declaration. |
Useful links on VAT in Italy |
|
| Tax Administration in Italy | Tax authorities |
| Ministry of Finance in Italy | Ministry of Finance |
| Check a VAT number in Italy | Check a VAT number |
| EU VAT Guide | EU VAT Guide |
|---|
Need VAT assistance in Italy? Contact us now.
A foreign company carrying out transactions in Italy subject to Italian VAT, may be required to appoint a tax representative. Established in Italy, the fiscal representative will fulfill the company’s VAT obligations to the Italian tax authorities on its behalf: filing VAT returns, paying VAT, claiming VAT refunds and carrying out tax audits.
Even when the appointment of a tax representative is not mandatory, a company may entrust the management of its VAT obligations to a tax agent. The difference between an agent and a tax representative essentially concerns the operator’s degree of responsibility. At EASYTAX, we will in any case use the term “tax representation”.
To secure your operations, lighten your company’s administrative burden, and control tax risks in Italy.
Intra-Community and Italian VAT regulations are complex and subject to frequent changes. Declaratory obligations are recurrent and vary in frequency. Penalties for default or delay, as well as errors in flow assessment, can quickly prove financially onerous.
Don’t take risks, don’t pull your hair out: leave the management of your VAT obligations to specialists.
Discover a simple, reliable and efficient tax representation service. EASYTAX handles all your VAT obligations, Intrastat, ESL, and your VAT recovery claims in Italy, in all European Union countries and certain non-EU countries. You have access to a dedicated consultant, who monitors your file and answers any questions you may have.
Need a tax representative in Italy? Contact us now.
The VAT rates currently in force in Italy are as follows:
Need a tax representative in Italy? Contact us now.
Do you need a VAT fiscal representative in Italy? Certain operations may require VAT registration and the filing of VAT returns in Italy:
To check whether your activities give rise to VAT obligations in Italy, use our VAT simulator .
Need a VAT tax representative in Italy? Contact us now.
In Italy , as in other European Union countries, e-sellers must register for VAT:
In addition to VAT registration, e-traders must:
Find out more:
Need a VAT tax representative in Italy? Contact us now.
You may need a VAT number in Italy to fulfil your tax obligations in this country. Indeed, certain activities such as sales, purchases and subcontracting operations may require VAT identification.
Italian VAT is named Imposta sul valore aggiunto (IVA)and the VAT numbers in Italy have the following structure: IT99999999999.
The administrations in charge of VAT in Italy are the following: Tax authorities, Ministry of Finance.
VAT identification is a relatively simpler formality than setting up a company, but beyond obtaining a VAT number in Italy, you’ll need to complete and submit periodic declarations to ensure your VAT compliance. Which is why we recommend foreign companies use a fiscal representative or tax advisor.
To check if your activities require VAT identification in Italy, use our VAT simulator or contact us.
Companies with a VAT number in Italymust complete and file dVAT decl arations in Italy detailing all taxable income (sales) and expenses (costs), at regular intervals:quarterly , annually.
Failure to comply with the deadlines imposed by the Italian authorities for the deposit and payment of VAT will result in the payment of penalties . For this reason, it is recommended that foreign companies use the services of an agent or a tax representative.
These penalties are defined as follows in Italy:
Need VAT assistance in Italy? Contact us now.
In addition to VAT returns, companies may be required to provide the Italian authorities with Intrastat & EC Sales List returns:
Our tax representation services enable you to fulfill all your VAT obligations in all countries of the European Union and beyond. Contact us today.
In principle, a non-resident company in Italy can recover all or part of the VAT incurred on its expenses.
There are three possible scenarios:
Rely on our VAT recovery services in Europe. Contact us today.
*This information is subject to change without notice.
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