Italy VAT Registration

Register your company for VAT in Italy

In Italy, registration for VAT is mandatory for all individuals or entities who carry out business activities involving the supply of goods or services, regardless of the level of turnover or profit. There is no minimum threshold for registration, and failure to register can result in penalties and fines.

There are no registration thresholds for businesses in Italy. Anyone who starts a business or agricultural activity or pursues an artistic or professional activity on a regular basis on the Italian territory must register with Italian VAT.

If you are making taxable deliveries of goods and services in Italy from a country abroad then you might also be in need of an Italian VAT registration.

VAT guide Italy information

When to register for VAT

In Italy, there’s no registration threshold for businesses. Anyone initiating a business or agricultural venture, or regularly undertaking artistic or professional activities within Italy must enrol for Italian VAT.

Here are instances when Italian VAT registration is required:

  • Importing goods into Italy.
  • Hosting live events, workshops, or similar gatherings.
  • Offering ‘Supply and Install’ services spanning over a year.
  • Providing goods manufactured in Italy to non-taxable entities or businesses without registration.
  • Trading goods between Italy and other EU countries.
  • Acquiring products from EU member countries.
  • Engaging in distance sales to private consumers, like online selling.

Established Entities

When an individual with taxable status starts an activity in Italy, they must inform the Italian VAT authorities about their registration obligation.

Foreign Entities

If your company isn’t based in Italy but conducts taxable transactions there, you might need to get a non-resident VAT registration. This aligns with the EU VAT Directive, which mandates foreign businesses to register for VAT under certain conditions to report taxable activities and declare the applicable VAT. Entities located in another EU nation can directly register for VAT in Italy. However, those outside the EU must designate a fiscal representative within Italy.

Selling into Italy?

We offer an all-inclusive VAT Compliance package

Italian Registration process

Taxable Persons

In the Italian VAT Law, the term “taxable person” is not explicitly defined. Instead, VAT is levied on supplies made in the course of carrying out a trade or business, or engaging in an entrepreneurial, artistic, or professional activity.

Voluntary Registration

Italian taxpayers whose turnover is below the VAT “Small Enterprise Threshold” and individual taxpayers whose turnover does not exceed the VAT compliance threshold are not required to account for VAT. However, they can opt to account for VAT to be eligible for VAT deductions.

Exemptions from Registration

There is no VAT registration threshold in Italy. All individuals or entities engaged in a trade, business, or professional activity that involves the supply of goods or services in Italy must register for VAT, regardless of turnover, but those with annual turnover below the Flat Tax Threshold can choose to be taxed under the flat tax regime without charging or recovering VAT.

In addition, Article 36-bis of the VAT Law provides that those who exclusively make exempt supplies can opt not to recover any VAT and be relieved of administrative obligations, though this is usually only beneficial for those with no taxable supplies triggering reporting or payment obligations.

Group and Divisional Registration

Group Registration

The implementation of these regulations is facilitated by a Ministerial Decree dated April 18, 2018. This enables certain related entities to form a VAT group, which is not mandatory, but allows them to be treated as a single entity for the purposes of Italian VAT.

Title V-bis of the Italian VAT Law, which was introduced by the Italian Stability Law of 2017, allows taxpayers in Italy to choose to adopt VAT grouping regulations that are similar to those of other EU Member States generally include the following:

  • The members of the group must be closely related, for example, through a holding relationship or majority ownership.
  • The members of the group must be established in Italy.
  • The members of the group must carry on an economic activity, such as the supply of goods or services.
  • The designated representative member of the group must be registered for VAT in Italy and must be jointly and severally liable for any VAT due on behalf of the group.

Divisional Registration

The Italian VAT Law does not allow for divisional registration, except for the registration of Italian branches of non-Italian companies as discussed earlier. In other words, each business or entity must register for VAT separately, regardless of any internal divisions or departments they may have.

Registration Procedures

The registration process varies based on the taxpayer category:

  • Italian-based legal entities, non-resident entities with a permanent establishment in Italy, and entities outside the EU with a fiscal representative in Italy need to register for VAT. They do this by submitting the form AA7/10 to the appropriate tax office determined by their location. This VAT registration should be filed within 30 days from when the activity starts.
  • Non-resident entities in Italy, but conducting business, artistic, or professional endeavors in another EU Member State, should register for VAT using the form ANR3, directed to the Pescara tax office. They should register for VAT before initiating any VAT-relevant transactions in Italy.

Failure to register for VAT timely can lead to penalties and potential interest charges on delayed VAT payments or filings.

New EU VAT Regulation July 2021

Starting from July 2021, a fresh regulation was introduced. The country-specific VAT thresholds were replaced with a uniform EU-wide distance selling threshold set at €10,000.

Sales below this threshold continue to be VAT-taxable in the originating country or the business’s home country.

However, sales surpassing this amount are taxed in the nations where the goods and services are supplied.

VAT thresholds

Interested in Italian VAT updates?

Subscribe to our newsletter

Fiscal representation in Italy

A fiscal representative is a local agent or accountant based in Italy responsible for the VAT due, sharing joint liability. For companies outside of Europe registering for VAT in Italy and making VAT reclaims, appointing a fiscal representative is mandatory. Given the inherent risks and responsibilities, the representative typically asks for a deposit or bank guarantee and puts in place measures to ensure the information is precise and submitted punctually.

Should any challenges arise related to cross-border operations, your fiscal representative is the one to address all concerns and proceedings on behalf of your company. They will manage all filings, tackle administrative tasks, and keep you updated on rule changes or regulations that might impact you.

In early February 2021, the Italian Tax Authority declared that UK businesses are exempted from appointing a fiscal representative for VAT matters. However, businesses from non-EU countries still need fiscal representation in Italy.


Last Updated: 07/09/2023


The information provided by Global VAT Compliance B.V. on this webpage is intended for general informational purposes only. Global VAT Compliance B.V. is not responsible for the accuracy of the information on these pages, and cannot be held liable for claims or losses deriving from the use of this information. If you wish to receive VAT related information please contact our experts at support@gvc.tax

Download below the full Italian VAT Guide in pdf

*By downloading our guide you agree to subscribe to the GVC monthly newsletter

Contact GVC for more information


Get the latest VAT information directly in your inbox and stay up to date with all VAT developments around the world.

You have Successfully Subscribed!