VAT in Italy
VAT registration in Italy may be an obligation for businesses that have cross border operations in this country, and particularly for companies with main activity "trading" or which are active in the B2C industry.
However, applying for a VAT registration in Italy is definitely not an easy process. Indeed, the Italian Tax Authorities require a lot of information and some required documents must be apostilled. It is then important that the registration documents are listed and prepared carefully.
The process of VAT registration in Italy must therefore be anticipated otherwise your invoices will not be compliant and could be subject to VAT audits and penalties inflicted by the Italian Administration. Our mission, as a tax representative, is to assist companies from all over the world which want to be on the safe side from a VAT perspective.
If your company is involved in one or some of the following operations, then a VAT registration in Italy is compulsory.
- You perform Intracommunity supplies of goods from Italy to VAT registered clients within the EU.
- You sell goods from Italy to clients based outside the European Union (Exports of goods).
- You store goods in a warehouse in Italy as stock for resale.
- You perform "supply and install" services over 12 months.
- You sell goods to private individuals e.g. ecommerce retailing.
- You provide services to private clients on the Italian territory.
- You import goods from non EU countries to Italy.
The operations listed here above are the most common transactions requiring a VAT registration in Italy. Please however bear in mind that this list is not exhaustive and that it is always wise to ask VAT experts’ opinion about the specific operations you may have in Italy.
VAT rates in Italy
1. Standard VAT rate
The Italian standard VAT rate is 22%.
2. Reduced VAT rate
Italian VAT rate is 10% and applies on (non exhaustive list) :
- Supply of foods and non-alcoholic beverages,
- Supply of paharmaceutical products,
- Hotel accommodation,
- Passenger transports,
- Supply of gas and electricity for domestic use.
VAT registration process
Applying for a VAT registration number in Italy usually takes from 4 to 6 weeks provided that all the documents and information required by the Italian Tax Authorities are all complete and accepted. We, however, would like to point out that the collection of these documents takes time. Therefore RMB’s experts will be happy to assist you with the preparation of your VAT registration documents. RMB will check your documents and will take care, on your behalf, of the possible additional requests or questions that the Italian Tax Authorities may raise. RMB can also handle the filing of your VAT returns and advise you about the mentions that must be shown on your invoices in Italy.