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This guide provides a summarized overview of VAT (Value Added Tax) in Italy, including applicable rates, registration requirements, invoicing rules, compliance obligations, and filing deadlines. It is designed for businesses engaging in transactions within Italy or with Italian customers.
The VAT system in Italy, known locally as Imposta sul Valore Aggiunto (IVA), is a tax on the consumption of goods and services at each production stage. Italian VAT is chargeable on local Italian transactions, transactions within the EU, and imports. The system follows the EU VAT directives, with local adjustments to suit the Italian market.
Euro (€)
IT, followed by 11 digits (e.g., IT12345678901)
Yes, required for non-EU businesses in certain circumstances.
There are no registration thresholds. Any legal entity, whether established in Italy or otherwise, must register for VAT by submitting an AA7/10 Form within 30 days of commencing taxable economic activity in Italy.
| Rate | Rate Type | Description |
| 22% | Standard Rate | Applies to most goods and services |
| 10% | Reduced Rate | Restaurants, medicines, baby and feminine hygiene products, etc. |
| 5% | Reduced Rate | Social, health and education services by welfare associations |
| 4% | Reduced Rate | Books, e-books and essential food items like pasta and bread |
| 0% | Zero Rate | Intra-community and export transactions |
| Business Type | VAT Registration Threshold |
| Resident Businesses | There is no threshold. There is, however, a special regime for resident businesses with a turnover of less than EUR 85,000 per annum. |
| Non-Resident Businesses | There is no threshold. Registration is required for any taxable activity in Italy. |
| Frequency | Filing Deadline | Payment Deadline |
| Monthly | Last day of the following month | 16th day of the following month |
| Quarterly | Last day of the second month following the quarter | 16th day of the second month following the quarter |
| Annual | April 30 of the following year | March 16 of the following year |
| VAT on Cross-Border Electronically Supplied Services | Yes |
| VAT Rate on Digital Services | 22% |
| Threshold for Registration | EUR 10,000 per calendar year for EU businesses; no threshold for non-EU businesses |
| VAT on B2B Sales | Reverse charge mechanism applies |
Italy follows the EU’s ESS VAT rules. Businesses providing digital services (e.g., website hosting, software, digital media) must apply the VAT rate based on the consumer’s location, often utilizing the OSS system for cross-border services.
Access to electronic newspapers and periodicals may also be exempt if used for public interest or educational purposes.
Italy enforces strict digital reporting requirements, particularly for cross-border transactions. All intra-EU supplies and specific services must be reported through the SDI, ensuring complete digital data collection. Italian businesses and foreign suppliers must comply to maintain VAT obligations.
Disclaimer: The information in this article is for general informational purposes only and may not cover all aspects of Italian VAT. Consult one of our tax professionals for specific guidance regarding your business.
| Pos. | Username | Country | Score |
|---|---|---|---|
| 1 | marko.kangasmaki@solnet.group | Finland | 100 % |
| 2 | Connor | Afghanistan | 92 % |
| 3 | Plrstrive | United Kingdom | 92 % |
| 4 | elkeg | Netherlands | 92 % |
| 5 | Cait | South Africa | 92 % |
| 6 | Chilli Dev | South Africa | 92 % |
| 7 | Brett | South Africa | 83 % |
| 8 | Quizard | South Africa | 83 % |
| 9 | Quinny Ness | South Africa | 75 % |
| 10 | Bronwynm | South Africa | 75 % |
