VAT in Italy
In Italy, the Value Added Tax is referred to as the Imposta sul Valore Aggiunto (IVA) and was initiated in 1972, largely under the Presidential Decree No. 633. The EU VAT Directives have been integrated into Italian VAT regulations, with Italy being a founding member of the EU. Italian VAT laws are supported by case law and further detailed by administrative guidelines that list various VAT compliance standards. The VAT system in Italy is supervised by the Ministry of Finance.
Italy is a member state of the European Union and is required to follow the EU’s Value-Added Tax (VAT) legislation. This legislation has been standardized across the EU, including Italy, to create a level playing field for businesses and consumers across the region.
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!
Selling in Italy?
Introduction to VAT in Italy
- The EU VAT system is built upon two essential principles:
- Firstly, VAT is a consumption tax that is applied to the final sale of goods and services.
Secondly, the principle of fiscal neutrality means that the VAT system should not create any unfair advantages for businesses or influence consumers’ choices.
Scope of Taxation
Italian VAT law is consistent with Article 2 of the EU VAT Directive, which Member States are required to transpose into their domestic laws, resulting in substantial harmonization across the EU. Thus, VAT is charged on the following types of transactions:
- Taxable persons who carry out supplies of goods or services within Italy’s borders.
- Imports.
- Intra-community acquisitions of goods into Italy carried out by a taxable person.
- Reverse-charge services received by a taxable person in Italy
Italy VAT information
| Tax Authority | Agenzia delle Entrate |
| VAT in local languages | ‘’Imposta sul Valore Aggiunto’’ |
| Currency | € Euro |
| VAT number format
|
IT+11 digits |
| IT12345678901 | |
| VAT rates
|
Standard 22%; Reduced 10%, 5% and 4% |
| Zero-rated (0%) and exempt | |
| Thresholds | |
| Registration | |
| Established | None |
| Non-established | None |
| Intra-Community acquisitions | None |
| Intra-EU Distance sales and electronically supplied services to consumers (OSS) | EUR 10,000 |
| VAT Group | Allowed but not mandatory. This is facilitated by a Ministerial Decree dated April 18, 2018. |
| Voluntary Registration | Allowed. Taxpayers who fall below the VAT “Small Enterprise Threshold” are not obligated but can opt to do so. |
| 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 |
| Frequency | Monthly or Quarterly for VAT payments. Quarterly and Annual for VAT returns |
| Intrastat M/Q | 25th day following the end of the reporting period |
| Annual Return | Between February 1 and April 30 of the following year |
| Electronic Invoicing | Electronic invoicing is mandatory in Italy for all transactions between taxpayers (businesses, freelancers, etc.) since 2019 and became fully mandatory starting 2021. |
Last Updated: 07/09/2023
Disclaimer
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