This guide is for e-commerce companies that sell online via web stores or at marketplaces.
VAT Standard rate
The standard VAT rate in Italy in 2023 is 22%.
VAT Reduced rate
10%
- Certain products and services are eligible for the special reduced rate, including electric power supplies for listed uses and listed drugs.
5%
- Certain products and services are eligible for the special reduced rate, including children’s products and feminine intimate hygiene.
4%
- Certain products and services are eligible for a special reduced rate, including food, drinks, and agricultural products.
Deductible VAT
If goods or services were used to make taxable supplies in Italy, VAT in input invoices might be credited. Examples include:
- VAT paid at custom clearance with your EORI number;
- VAT paid to Italian suppliers.
See the summary of the EU VAT rates.
Thresholds
From the 1st of July 2021, the distance selling thresholds were withdrawn and replaced by a unified threshold of EUR10,000 for all EU members.
In other words, VAT should be charged at the VAT rate of the customer’s country of residence by companies whose annual taxable cross-border turnover is over €10,000.
Registration procedure
When a company has the obligation to register, the owners will be required to complete and submit a VAT registration form, along with supporting documentation:
- Certificate of incorporation;
- Trade register extract;
- VAT certificate;
- Articles of Associations;
- If the company is appointing a local tax agent or Fiscal Representative, then a Letter of Authority or Power of Attorney is.
The Intra-community VAT number should be received under a separate application.
Tax representative
Taxable companies established outside the European Union are obliged to appoint fiscal representatives in order to handle all formalities related to VAT registration and filling.
Keeping records
In Italy, there are strict rules on the layout and format of VAT records to be kept by companies or their tax agents. Records must be kept by the taxable person or by the keeper of its accounts and reported to the competent Tax Agency. It is not possible to keep abroad paper invoices and other documents relevant for tax purposes that are paper archived (accounting registers included). In such cases, the VAT books and the other relevant documents (i.e.: invoices and transport documents) have to be submitted upon request of the Tax Authorities. The retention period for the records is ten years.
Sales list
The European sales list (ESL) must be filled and submitted on a monthly basis.
If your deliveries do not exceed $50,000, then you can submission of reports quarterly (it is necessary to obtain the consent of the tax authority). The report must be submitted before the 25th day of the month following the reporting period.
VAT payment date
Periodical VAT payments are due on a monthly or quarterly basis. The VAT due must be paid before the 16th day of the month following the period or the 16th day of the second month following the quarter. In the case of a quarterly scheme interest applies.
Filing VAT returns
A taxpayer must transmit tax returns to the L’Agenzia delle Entrate by electronic means. The LOVAT platform supports digital submission.
The tax period is one quarter. Quarterly VAT returns must be filed by electronic means before the 16th of the month following the quarter.
Annual VAT returns must be filled up to 30th April of the following year.
Companies can also keep track of deadlines at the Lovat portal.