Italy
On this page you’ll find everything you need to know about Italian VAT registration, Returns, Tax Representation and your legal obligations within Italy.
Looking to sell goods into Italy?
In Italy
An Italian Company would need to register for VAT if:
- You sell goods to consumers based in Italy; and
- Your sales exceed Italy domestic VAT threshold of €65,000.
You may also need to register for VAT separately in other EU countries if:
- You sell goods to consumers in other EU countries.
In a different EU Country
You need to register for VAT in Italy if:
- You store your goods in Italy or
- You sell to Italian-based consumers (non-business); and
- Your sales exceed the EU-wide distance selling threshold of €10,000
- You import goods directly into Italy
Outside the EU
You need to register for VAT in Italy if:
- You store goods in Italy
- You import goods into Italy
- You buy goods from other EU businesess located in an EU country that is not Italy
You may also need to register for VAT separately in other EU countries if:
- You sell goods to consumers in other EU countries.
- You do not opt for the Union One Stop Shop Scheme
Types of Italian VAT
| Rate | Type |
|---|---|
| 22% | Standard |
| 10% | Reduced |
| 5% | Reduced |
| 4% | Reduced |
| 0% | Zero |
The VAT threshold is the threshold of gross sales that you make within Italy. Also known as distance selling, the threshold for EU businesses selling into other EU countries is €10,000. This means when you reach or exceed this amount across Europe to any EU country you are required to register for VAT in Italy from the first sale over the threshold. For Non EU it is very different. If you are storing goods in any EU country via a fulfilment centre such as Amazon FBA then regardless of sales you are required to register for VAT in the country you are storing in. If you are shipping goods from your own non-eu country then there are 2 options. You must first clear the goods into the destination eu country and you will be required to pay the VAT and Duty to the Italian authorities. In order to claim this back you must be VAT registered.
Option 2 - you can charge the VAT & Duty to your customer, however since this is not described on sites such as Amazon, eBay and other marketplaces this may land you in alot of trouble with the customer being dissatisfied if you did not make this clear before they purchased.
Italian VAT Rates
22% Standard - All other taxable goods and services
10% Reduced - Some foodstuffs; water supplies; some pharmaceutical products; domestic passenger transport; admission to cultural events; some social housing; renovation and repair of private dwellings; some construction work on new buildings; some supplies of new buildings (non-luxurious); some agricultural supplies; hotel accommodation; restaurants; admission to certain sports events; energy products (excluding district heating); firewood; collection of domestic waste; some waste water treatment; alcoholic beverages in bars and cafes; take away food; cut flowers and plants for decorative use and food production
5% Reduced - Some foodstuffs; some social services; certain passenger transport
4% Reduced - Some food products; certain medical equipment for disabled persons; certain books; newspapers and some periodicals; e-books with an international standard book number (ISBN) ; online journals newspapers; TV licence; some social housing; some agricultural supplies; certain social services; motor vehicles for the disabled; construction work on new buildings (for first housing); supplies of new buildings (for first housing)
0% Zero - Intra-community and international transport
Fiscal Representation
In accordance with the EU VAT Directives, a local Italian fiscal representative or agent is not required by a company resident in another EU member state. However, a fiscal representative, who is jointly liable for the Italian VAT, is required for non-EU companies.
As part of your Italian VAT Registration with us we will become your Fiscal Representative in Italy and communicate to the Italian VAT Authorities on your behalf and also complete your VAT returns so you work within the law. This leaves you to focus on selling your goods.
Italian VAT Returns
All tax payers registration for Italian VAT must submit a quarterly VAT return in Italy. This is due on the last day of the second month following the filing period, so a filing period for Q1 for January, February and March would be due by 31st May
An Annual VAT return is also required in Italy and is due by 30th April the following year.
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VAT Registration & Filings
Unlock your sales potential with our bespoke VAT registration and filings services. Our team is ready to identify your VAT obligations allowing your business to expand across the world with a dedicated team beside you.
Leave the complexities to us, our professional team provide a seamlessly fast registration service and help you keep on top of the various filing deadlines so you can keep on top of what matters most.
Import/one stop shop
The two simplification schemes allow for both EU and non-EU businesses to lower the cost of VAT compliance and report multiple transactions using only one registration.
Enrolling in the schemes allows businesses to charge the correct VAT rate of each European country without the need to register for VAT in every member state.
The One Stop Shop and Import One Stop shop have set requirements for businesses to follow to stay compliant, find out more in our service guides.
fiscal representation
When a non-European business trades with the EU, some member states impose the need for a fiscal representative to be appointed for registration, filing, imports or VAT reclaims depending on the various EU rules.
VAT Digital is a recognised and certified European Fiscal Representative allowing for our non-EU clients to trade freely with the EU. This enables a lot of benefits for businesses when registering and importing goods to the European Union.
VAT refunds
Selling internationally can be very profitable but also increase the burden of expenditure for businesses. VAT expenses on goods, services and other operations outside of your home country can be difficult to recover due to the lack of registration or non-compliance.
VAT Digitals specialist team can help identify where VAT can be recovered and process a reclaim to ensure your business is maximizing its profits.
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Hayley, Soterra Limited
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We have used VAT Digital now for 4 years and they have been instrumental in helping us build our business. They are always helpful as well as prompt to answer any queries and with a wealth of knowledge. I would have no hesitation in recommending them.
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As a small business I found navigating how to register for IOSS incredibly daunting and confusing until I found VAT Digital. VAT Digital enabled my understanding, provided excellent advice and the onboarding process was simple. I would highly recommend VAT Digital and their services
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I use VAT Digital as our agent for VAT in both Germany and Ireland – including setting us up in Ireland. The service we receive is always first class – including timely reminders to submit data when necessary. Whenever I’ve had queries on the correct treatment of particular items they are always answered promptly and in detail.
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Efficient and streamlined service
I’ve been using VAT digital for 3 years now for all my EU VAT filings. I was with a bigger firm before them and I am very satisfied with the switch. They are very helpful, responsive (this was a major requirement for me) and accurate. Their prices are in line with the market or a little lower. Recommended!