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.
Here you can find the specifics of VAT regulations in Italy, which work alongside the harmonised framework of the EU as explained in our guide to intra-Community VAT obligations.
|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||no|
Thresholds triggering VAT reporting obligations in Italy
|Intrastat threshold at introduction||200 000 EUR|
|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 declaration||monthly depending on threshold|
|EC Sales List (ESL) declaration||monthly according to threshold/conditions, quarterly depending on threshold/conditions|
|VAT returns||quarterly , annually|
VAT-related penalties in Italy
|Failure to file a VAT return||Minimum penalty of EUR 250 up to 240% of the amount of VAT due.|
|Late payment of VAT||Penalty of 15% of the amount of VAT due if payment is made within less than 90 days after the deadline, and 30% of the VAT due if payment is made within more than 90 days; and late payment interest of between 0.2 and 3.5% of the amount of VAT due.|
|Failure to report ESL/DEB||Penalty of EUR 500 to 1,000.|
Useful links on VAT in Italy
|Tax Authorities 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|
The current VAT rates in Italy are as follows:
Certain transactions in Europe may require registering for VAT and filingVAT returns in Italy:
In Italy just like in other European Union countries, e-traders must register for VAT:
In addition to VAT registration, e-traders must:
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. To check if your activities require VAT identification in Italy, use our VAT simulator or contact us.
VAT Italian is named Imposta sul valore aggiunto (IVA)and the VAT numbers in Italy have the following structure: IT99999999999.
Registering for VATis a relatively simple formality compared to setting up a company, but in addition to obtaining a VAT number in Italyyou’ll need to file periodic VAT returns to ensure your VAT compliance. Which is why we recommend foreign companies use a fiscal representative or tax advisor.
Companies with a VAT number in Italy must complete and submit VAT returns in Italy detailing all taxable income (sales) and expenses (costs), with the following periodicity: 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:
In addition to VAT returns, companies may be required to provide the Italian authorities with Intrastat & EC Sales List returns:
In principle, a non-resident company in Italy can recover all or part of the VAT incurred on its expenses.
There are three different scenarios:
*This information is subject to change without notice.
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