Italy VAT rates
Ciao! We’re here steer you through the complexities of VAT compliance in Italy.
Whether you’re selling in vibrant marketplaces or shipping to the scenic landscapes of Italy, AVASK have got the expertise to keep your e-commerce business thriving.
What is the VAT rate in Italy?
Italy has a standard VAT rate of 22%, which applies to most goods and services. However, there are exceptions:
- First reduced rate (10%): on services like tourism and entertainment
- Second reduced rate (5%): essential goods such as some social services, some foodstuffs and pharmaceutical products
- Super-reduced rate (4%): basic necessities such as some foodstuffs, books, and medical equipment
- Zero rate (0%): for intra-community and international transport
VAT registration in Italy
For business operating within Italy, understanding when and how to register for VAT is crucial.
Who needs to register for VAT in Italy?
In Italy, there’s no VAT registration threshold. Whether you’re opening a shop, starting a farm, or setting up a studio, you’ll need to sign up for VAT before you begin your business operations.
Is fiscal representation required?
If your business is set up in the EU, like in France or Belgium, you can choose to either appoint an agent or handle the VAT registration in Italy on your own.
But if your business is based in a non-EU country, you’ll need to appoint a fiscal representative in Italy to take care of your VAT registration and tax duties. This person will be your main contact for all things VAT in Italy.
VAT Compliance for Businesses in Italy
If you run a business in Italy and you’re registered for VAT, here’s what you need to do:
- File VAT returns: Every quarter, you have to report how much VAT you’ve collected and paid
- Keep VAT records: VAT records should be maintained monthly. If the tax office asks, you have to show them these records
VAT payments
VAT returns in Italy are filed monthly by default. Quarterly submissions can be made but a 1% VAT surcharge is placed on any VAT due.
Frequently Asked Questions
What is the format of an Italian VAT number?
The format of an Italian VAT number consists of the country code IT followed by 11 numeric characters.
For example, it would look like this: IT12345678901
What is VAT exempt in Italy?
Some goods and services are exempt from VAT in Italy, such as education, insurance services and specific financial services.