Known as the Imposta sul Valore Aggiunto (IVA), Italy’s Value Added Tax was introduced in 1972 primarily governed by Presidential Decree No. 633. It has incorporated EU VAT Directives into Italian VAT Laws, of which Italy is a founding member. The Italian VAT laws are backed up by case law. Also, the tax authorities produce Administrative doctrines, which state numerous VAT compliance rules. The Ministry of Finance oversees the VAT system.
Everything you need to know about VAT in Italy such as VAT Registration, Returns, Tax Representation (if applicable), and your legal duties in Italy, is conveniently located right here!
The Italian VAT laws are backed up by case law. Also, the tax authorities produce Administrative doctrines, which state numerous VAT compliance rules. The Ministry of Finance oversees the VAT system.
Italy is an EU Member State. VAT legislation has been harmonized across the EU in many respects, including Italy.
The EU VAT system is founded upon the following two fundamental principles:
• VAT is a general consumption tax.
• VAT preserves fiscal neutrality.
VAT is charged on the following types of transactions:
• Supplies of goods or services carried out within the territory of Italy by a taxable person.
• Intra-community acquisitions of goods into Italy carried out by a taxable person.
• Reverse-charge services received by a taxable person in Italy
|National Legislation||Agenzia delle Entrate|
|VAT in local languages||‘’Imposta sul Valore Aggiunto’’|
|VAT number format
|Standard 22%; Reduced 10%, 5% and 4%|
|Zero-rated (0%) and exempt|
|Frequency||Monthly or quarterly VAT payments, quarterly and annual VAT returns|
|Intra-EU Distance sales and electronically supplied services to consumers (OSS)||EUR 10,000|
|Recovery of VAT by non-established businesses||Yes|
|Compliance Returns and Deadlines|
|VAT Payments M/Q||Quarterly –16th day of the second month following each calendar quarter, except for the last quarter. The VAT payment of the last quarter is due by 16 March of the following year if the taxpayer opted for quarterly VAT payments.
Monthly – 16th day of the following month
|VAT Return Q||Last day of the second month following each quarter. The Quarterly VAT Return related to the second quarter must be submitted by 16 September, while the one related to the fourth quarter must be submitted by the last day of the month of February|
|Intrastat M/Q||25th day following the end of the reporting period|
|Annual Return||Between February 1 and April 30 of the following year|
Last Updated: 02/02/2022
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All transactions carried out by foreign counterparties are required to submit to the Interchange Data System (“SdI”) in .XML format. Additionally, the .XML files for sales transactions carried out by non-resident taxpayers (not established in Italy) should be submitted to the SdI system within the invoicing deadlines.
On 3 November 2021, the Italian Revenue Agency issued ruling no. 756 explaining the VAT treatment of the transactions taking place in the post-Brexit period between an Italian permanent establishment and the parent company belonging to the English VAT group.
In response to the COVID-19 pandemic, the government of Italy introduced Decree-Law No. 215 containing VAT amendments that exempt supplying goods and services used to combat COVID-19 from VAT.