Is fiscal representative compulsory in Italy ?
Italy is a European Union Member State. If your business is established in another European Country appointing a tax agent or VAT representative is not compulsory.
Italy yes REQUIRES a tax representative for non EU businesses.
When and how do you have to register for VAT as taxpayer?
Registration in Italy is made in two ways. The first layer is a simple identification for tax purposes : you get your TIN (Tax Indentification Number). It may be for customs needs (your business buys/sells within exempted areas or bonded warehouses, or IntraCommunity purchases. It is just as simple and limited to a Tax number.
A second layer is requested for businesses triggering « right to deduct » and this means the business is performing operations for which it has rights and duties :
– the business has to submit periodical returns to report local operations
– the business has no more access to VAT refund through transnational web portal or 13th Directive, but reports VAT on purchases directly on the form(s) (Comunicazione Liquidazioni Periodiche IVA) provided by in Italy like other established companies.
This « trigger » is activated when :
– you deliver goods to individual particulars in Italy and do not / cannot opt for the Distance Sales Threshold relief.
– you move goods from Italy to another State, being third country or Member state.
In most cases your VAT number in Italy will be similar to IT01234567890.
What is the threshold for deliveries to particulars individuals in Italy ?
Distance selling as per art. 34 of VAT Directive (and taxable persons not entitled to deduct input tax and by non-taxable legal persons as per art. 3(2)(a) of the VAT Directive) :EUR 35,000
EUR 10,000 (acq. exempted pers.)
Once registered for VAT with right to deduct, which VAT should your business apply in Italy ?
Standard VAT rate in Italy is 22%, while intermediate rate is -. On the other hand, reduced rate is 4%, 5% and 10%.
Application of Article 37 and 109 to 122 of the VAT Directive in Italy : exempt; exempt with credit
Please note that we open access to a detailed table of VAT rates per goods and services in Italy :
See our section https://becompliant.tax/vat-rates-italy
What is the scope of a fiscal representative in Italy?
Fiscal representative should always diagnose your operations in Italy and establish clearly and by written :
1- What your transactions are
2- Where your transactions must be reported : territoriality
3- what are your liabilities in the reporting territory : VAT? ECSL? Intrastat?
4- what are the conditions in which you must charge or exempt VAT in your invoices
5- provide you with a reporting agenda
What form for VAT returns and when to submit in Italy ?
Your fiscal representative in Italy will have to submit periodically on your behalf.
The VAT form you are expected to submit in Italy : Comunicazione Liquidazioni Periodiche IVA
In Italy, the periodicity of VAT (locally called Imposta sul valore aggiunto (IVA)) is as follows :
Monthly VAT returns in Italy are due 16th of following month, always that Payment is due if result of return is positive
Your VAT payment is due : Same as return.
Quarterly VAT returns in Italy are due 16th of 2nd month follwing quarter, always that Vat monthly payments can be grouped quarterly adding a 1% supplementary interest (non refundable) rate on due amount
Your VAT payment is due : Same as return.
Yearly VAT returns in Italy are due 16th of following month, by default
Your VAT payment is due : 30th of April of following year.
What are the E/ICSL a fiscal representative submits in Italy ?
The ECSL you are expected to submit in Italy : See Intrastat
Your statistical declarations (Intrastat) in Italy : Monthly / quaarterly (25th of following month
What are the late registration penalties in Italy ?
VAT Return (yearly) :
– late (> 90 days): minimum penalty is € 200, 60% to 120% of the VAT due
– unsubmitted : minimum penalty is € 250, 120% to 240% of the VAT due
Periodic Payment :
– late : € 500 to € 2 000
Please note taht Italy has many penalties. Ask our team for details.
Where to find official information about VAT in Italy
Italy transposed the European Directive into national regulation Directive 2006/112/CE of 2006/11/28; Presidential Decree no. (D.P.R.) 633 dated 26 October 1972..
The Revenue administration responsible for VAT in Italy is :
Ministry of Finance (http://www.finanze.it).
This information is kindly updated by Flavio VILLORESI.
Dott. Flavio VILLORESI
Managing Director at International-fiscalis.
Italian consultant, 15 years experience.
VAT and intrastat regulations compliance for domestic and foreign companies : VAT representative, direct identification, tax agent and intrastat compliance.
Via Roberto n. 32
18012 Bordighera (IM) ITALIA
VAT and INTRASTAT compliance in Italy
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