Italy
This guide is for e-commerce companies that sell online via web stores or at marketplaces.
Provinces
Goods
Provinces
Goods
Digital services
About
Goods
About
Goods
About
Digital services
About
Digital services
Goods
Digital services
Goods
Digital services
VAT Standard rate
The standard VAT rate in Italy in 2024 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.
Effective since 1 January 2015.
Digital business in Italy is regulated by DECRETO LEGISLATIVO 31 Marzo 2015, n. 42 implementing the Directive 2000/31/EC on certain legal aspects of information society services, in particular, electronic commerce, in the Internal Market (Electronic Commerce Directive).
VAT Standard rate
The standard VAT rate in Italy in 2024 is 22%.VAT Reduced rate
4% eBooks.VAT calculation peculiarity
VAT= Total revenue * 22/122.
VAT Standard rate
22%
VAT Reduced rate
10%, 5%, 4%
Thresholds
€10,000
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From the 1st of July 2021, the distance selling thresholds were withdrawn and replaced by a unified threshold of EUR10,000 for all EU members.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. Italy VAT registration threshold for resident businesses rise at the start of 2023 to €85,000Registration 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.
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 electronically on the 16th day of the second month following the quarter. For example, VAT returns for the 1st quarter must be filed no later than May 16. 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.E-invoicing Italy
What is E-invoicing?
E-invoicing in Italy is the process of issuing, transmitting and receiving invoices in electronic format. It replaces traditional paper invoices and ensures compliance with Italy's e-invoicing requirements. To learn more about the global landscape of e-invoicing and the technologies that facilitate this process, check out Multi-Country E-Invoicing Engine. All electronic invoices in Italy must adhere to the FatturaPA format, a structured XML standard required for interoperability and verification. The mandatory use of e-invoicing allows the Italian Tax Authority (Agenzia delle Entrate) to monitor transactions in real time, ensuring accurate reporting of VAT and other tax obligations. The key platform for e-invoice processing is the Sistema di Interscambio (SdI). If you're looking for information on how electronic invoicing systems operate in multiple countries, refer to our detailed Multi-Country E-Invoicing Engine page.How E-invoicing Works in B2G, B2B, and B2C Transactions
E-invoicing applies to different types of transactions, including Business-to-Government (B2G), Business-to-Business (B2B), and Business-to-Consumer (B2C). Below is an explanation of how e-invoicing works in each category, along with specific examples.B2G (Business-to-Government)
E-invoicing has been mandatory for public administration purchases since June 2014. Businesses providing goods or services to government entities must submit invoices in the FatturaPA format through the SdI platform. The government agency verifies the invoice and processes the payment. For more on B2B e-invoicing requirements across different jurisdictions, explore the Multi-Country E-Invoicing Engine. Example: A construction company working on a government project issues an invoice for its services. The invoice is created in the FatturaPA format and submitted through the SdI platform. The government agency verifies and approves the invoice before proceeding with the payment.B2B (Business-to-Business)
Since January 2019, businesses in Italy must issue e-invoices for transactions between companies. These invoices must include the recipient's SDI Code (Codice Destinatario) to ensure proper delivery through the SdI platform. Example: A marketing agency provides consulting services to another company. The agency generates an invoice with the client’s SDI Code and transmits it via the SdI system. The client receives the invoice, and the transaction is recorded for VAT compliance.B2C (Business-to-Consumer)
For consumer transactions, businesses are required to issue e-invoices and include the customer’s tax code. While consumers are not required to process e-invoices, the invoices must still be transmitted via the SdI platform for tax reporting purposes. Example: Example: Retail store sells socks to an individual customer. The store generates an e-invoice, including the customer’s tax code, and submits it through the SdI platform. The customer receives a simplified copy for their records.Who Must Comply?
Below is a table summarizing the categories of businesses required to use e-invoicing, their obligations, and the relevant start dates. If you're looking for more details about the compliance requirements for e-invoicing in various countries, be sure to visit the Multi-Country E-Invoicing Engine.| Category | Requirement | Start Date |
| B2G (Business-to-Government) | E-invoicing mandatory for public administration purchases. | June 2014 |
| B2B (Business-to-Business) | E-invoicing mandatory for transactions between businesses. | January 2019 |
| B2C (Business-to-Consumer) | E-invoicing mandatory for consumer transactions. | January 2019 |
| Taxpayers over €25,000 | Mandatory e-invoicing for taxpayers with turnover exceeding €25,000. | July 2022 |
| All taxpayers | E-invoicing mandatory for all taxpayers, including flat-rate regime. | 2024 |
How to Obtain an SDI Code
The SDI Code (Codice Destinatario) is a unique identifier that determines where the e-invoice will be delivered through the SdI system. It is essential for ensuring that invoices reach the correct recipient. Our Multi-Country E-Invoicing Engine provides insight into obtaining SDI codes and similar identifiers in multiple countries.Where to Obtain the SDI Code
- Companies and VAT-registered individuals can obtain their SDI code by registering with an accredited service provider or directly through the Agenzia delle Entrate (Italian Tax Authority).
- Businesses that use certified channels, such as SDICoop or SDIFTP, receive a dedicated SDI code.
- For recipients using a Certified Electronic Mail (CEM) address, the SDI code is represented as a placeholder (e.g., “0000000”).
Features of the SDI Code
- The SDI code must be included on every e-invoice sent through the SdI system.
- Businesses must communicate their SDI code to suppliers to ensure proper delivery.
- If a recipient does not provide an SDI code, invoices can still be sent using their VAT number or a general code.
Exemptions
While e-invoicing is mandatory for most businesses, certain exemptions exist:- Taxpayers using the flat-rate tax regime with annual turnover below €65,000 were initially exempt.
- As of July 2022, the exemption threshold was reduced to €25,000.
- Starting from 2024, e-invoicing will apply to all taxpayers, removing any remaining exemptions.
Key Milestones in E-invoicing Implementation
The implementation of e-invoicing in Italy has been gradual, with key milestones highlighting its progressive adoption:- November 2013
- The State General Accounting Office issued Circular No. 37, introducing e-invoicing for public administrations.
- June 2014
- E-invoicing became mandatory for central public administrations, such as ministries and tax authorities.
- 31 March 2015
- The e-invoicing requirement was extended to all government agencies.
- January 2019
- E-invoicing became a requirement for every B2B and B2C deal.
- July 2022
- E-invoicing became mandatory for taxpayers with annual turnover exceeding €25,000.
- January 2024
Threshold
The tax threshold is €0 for digital services.Pieces of evidence
To identify a customer’s location, the merchant has to collect at least two items on non-contradictory evidence. And if two of them are in Italy, the customer may be determined as Italian:- Customer’s permanent address;
- Billing address (bank or electronic payment operator);
- IP address;
- Telephone number;
- The location of the customer’s fixed landline through which the service is supplied to him;
- Other commercially relevant information.
E-services list
A digital product is any product that’s stored, delivered, and used in an electronic format. These are goods or services that the customer receives via email, by downloading them from the Internet, or through logging into a website, in particular:- E-books, images, movies, and videos, whether buying a copy from Shopify or using a service like Netflix. In tax language, these products are in a category usually called, «Audio, visual, or audio-visual products»;
- Downloadable and streaming music, whether buying an MP3 or using a service like SoundCloud or Spotify. Of course, these products also fall into the audio category;
- Cloud-based software and as-a-Service products, such as Software-as-a-Service (SaaS), Platform-as-a-Service (PaaS), and Infrastructure-as-a-Service (IaaS);
- Websites, site hosting services, and internet service providers;
- Online ads and affiliate marketing.
Registration procedure
A non-European taxable person that chooses to identify in Italy requires the registration filling out the online form available on the Agenzia delle Entrate website, in the free access area. With the credential, it can fill out the online format at the link «Registration». Via the portal e-merchant need to provide the following data:- A company name;
- The Country where the taxable person’s company is headquartered;
- Full address of the company;
- Electronic addresses: e-mail addresses, websites;
- Tax Identification Number is given by the Country of residence or domicile if any;
- A declaration stating he/she/it has not been already identified for VAT purposes in the EU;
- Bank details;
- Scheme starting date if prior to the registration date;
- Reference name: name, surname, e-mail address, and phone number of the individual;
- Italian Revenue Agency may refer to request information or send communications.
Keeping records
E-merchants need to store all VAT-relevant information for ten years. A company must keep them in files in case any authority wants to verify its tax history.VAT payment date
The payment has to be done within 20 days of the end of the period is referred to, namely:- 20th of April for the first quarter of the year;
- 20th of July for the second quarter of the year;
- 20th of October for the third quarter of the year;
- 20th of January for the fourth quarter of the year.
Filing VAT returns
Italian VAT return is due quarterly. Businesses registered for Moss in Italy have to submit the VAT Moss quarterly return electronically. At the end of each quarter, there are 20 days to file and pay whatever a company owes. The deadlines for the returns are:- 20 April – for the first quarter ending 31 March;
- 20 July – for the second quarter ending 30 June;
- 20 October – for the third quarter ending 30 September;
- 20 January – for the fourth quarter ending 31 December.
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