VAT in Italy – get registered and file correctly

If you are a foreign company selling to or trading with Italy, you must comply with Italian VAT regulations (known locally as IVA). As a general rule, foreign companies without a permanent establishment in Italy must register for VAT as soon as they make a taxable sale in the country; there is no turnover threshold. The standard rate is 22%, and invoices must be submitted electronically via the Italian SdI system. VAT returns are normally filed quarterly with the Italian authorities.

Do you need to register for VAT in Italy?

Under the EU VAT Directive, foreign companies are required to register for VAT in a number of situations. Registration ensures that you can correctly charge, report, and remit Italian VAT. It is important to assess this obligation before commencing operations to avoid fines and retrospective assessments. The most common circumstances triggering a registration requirement are:

• Import of goods into Italy from countries outside the EU.
• Purchase and sale of goods within Italy (except under the domestic reverse charge mechanism).
• Sale of goods from Italy to customers in other countries (both B2B and B2C).
• Intra-Community acquisitions—that is, purchases of goods in Italy from other EU countries.
• Inventory in Italy—for example, at Amazon—for sale, distribution, or consignment.
• Events in Italy where participants pay an admission fee.

If you are unsure whether your specific activity triggers a registration requirement, please contact us before you begin. We speak the language and know the local procedures.

VAT in Italy – rates and key figures

Conditions	Detail
Standard rate	22 %
Reduced rates	10 %, 5 % og 4 %
Zero rate (0%)	Including, among other things, intra-EU supplies of goods and exports outside the EU.
Registration threshold	None for foreign companies without a permanent establishment
Distance selling threshold (OSS)	€10,000 in total EU distance sales per calendar year
VAT number format	IT + 11 digits (Partita IVA), e.g. IT12345678901
Reporting period	Normally quarterly—though it can also be monthly—plus an annual VAT return.
Fiscal representative	Required for companies established outside the EU

The standard rate of 22% applies to most goods and services. Reduced rates of 10%, 5%, and 4% apply to selected goods and services, including certain foodstuffs and basic commodities. Exports outside the EU and supplies to other EU countries are generally subject to a zero rate. In addition to regular VAT returns, periodic statements and an annual VAT return must also be submitted.

E-invoicing via SdI (FatturaPA)

Italy was the first EU country to implement mandatory electronic invoicing. Invoices must be issued in XML format (specifically the FatturaPA format) and transmitted via the state-run clearing system, SdI (Sistema di Interscambio), which validates the invoice and forwards it to both the recipient and the tax authorities. This requirement also applies to many foreign companies registered for VAT in Italy, and invoices must typically be sent shortly after the transaction takes place. As this is a key compliance obligation, we assist in establishing the necessary setup to ensure your invoices meet all requirements.

E-commerce and webshop for Italy

If you sell to Italian consumers via an online shop, your obligations depend on where your goods are located. In the case of pure distance selling from a warehouse in another EU country, you can use OSS – One Stop Shop, when your total cross-border distance sales to consumers in the EU exceed EUR 10,000 (excluding VAT) per calendar year. You then account for Italian VAT via a single consolidated EU return instead of registering in each country.

If, on the other hand, you hold stock in Italy—for example, via an Amazon Fulfillment Center or other local storage—OSS alone is not sufficient. In that case, you must obtain a proper Italian VAT registration. Read more about Amazon and online marketplaces and about Danish e-commerce to the EU.

B2B trade and reverse charge

In B2B transactions, the reverse charge mechanism applies to the sale of certain goods and services from a business without a fixed establishment in Italy to a VAT-registered Italian customer. This means that the Italian buyer accounts for the VAT themselves, which can often reduce the need for local registration. However, the rules depend on the nature of the goods or services. If you sell to private individuals or maintain inventory in the country, the situation differs, and a specific assessment is required.

VAT refund in Italy

Har din virksomhed haft momsbelagte udgifter i Italien, kan du ofte få den betalte moms retur, selvom du ikke er momsregistreret der. Refusion gives typisk for messe- og konferenceudgifter, hotel, forplejning, brændstof, billeje, motorvejsafgifter, reklame samt vare- og ydelseskøb. Bemærk, at fradragsretten på nogle udgiftstyper som brændstof og billeje er begrænset. Vi hjælper dig med at vurdere, hvad der kan søges hjem, og med selve VAT refund.

Here is how TIMEVAT helps you in Italy

TIMEVAT is a specialist firm focused on finance and exports, with many years of experience handling VAT across Europe. We speak the language, know the local procedures, and have direct access to the Italian authorities. We act as your extended arm to the authorities and look after your business as if it were our own.

• Registration: We assess your registration obligations and handle the entire Italian VAT registration process, including the appointment of a fiscal representative if you are established outside the EU.
• Filing and Compliance: We handle your ongoing VAT returns, periodic statements, EU listings, and e-invoicing via SdI, ensuring compliance with deadlines and formats.
• VAT Refund: We identify expenses eligible for a refund and reclaim the Italian VAT paid on your behalf.

Frequently asked questions about VAT in Italy