As part of Italy’s sweeping tax reform, new obligations for fiscal representatives and represented entities have been introduced under Legislative Decree No. 13/2024. These changes, effective December 2024, impose stricter compliance requirements and mandate guarantees to ensure adherence to VAT regulations in Italy.
Here’s what businesses need to understand about these updates and how VAT IT Compliance can help:
Key Amendments to Italian VAT Regulations
1. Subjective Requirements for any firms acting as Fiscal Representatives
Under the amended Article 17, paragraph 3, of the Italian VAT Decree, fiscal representatives must meet the following criteria to assume this role:
- No criminal record: No convictions for financial offenses, even if the judgment is not final.
- No pending criminal cases: No ongoing criminal proceedings for financial offenses at the trial stage.
- Compliance history: No record of serious and repeated violations of income tax and VAT regulations.
For legal entities acting as fiscal representatives, these requirements apply to the entity’s legal representative.
2. Declaration and Guarantee Requirements
The Ministry of Finance has introduced a two-part compliance process:
- Declaration: Fiscal representatives must submit a declaration certifying compliance with the subjective requirements to the Italian Tax Authority (TA).
- Guarantee: A guarantee, valid for at least two years, must be provided in one of the following forms:
- State securities deposit
- Bank guarantee
- Surety bond
The guarantee’s value depends on the number of represented entities:
- €30,000 for 2–9 entities
- €100,000 for 10–50 entities
- €300,000 for 51–100 entities
- €1,000,000 for 101–1,000 entities
- €2,000,000 for more than 1,000 entities
Fiscal representatives acting for a single foreign entity are exempt from the guarantee requirement. However, any increase in the number of represented entities necessitates an adjustment to the guarantee.
3. Obligations for Non-EU Entities in the VIES Database
Non-EU entities wishing to conduct intra-EU transactions must now:
- Provide a guarantee of at least €50,000, valid for three years, to be included in the VIES database.
- Ensure the accuracy of all information submitted in their declaration of activity commencement. Failure to do so may result in penalties ranging from €3,000 to €50,000.
Deadlines and Consequences of Non-Compliance
Entities already acting as fiscal representatives or included in the VIES database must:
- Submit the required declarations and guarantees within 60 days of the implementing regulation’s publication. This regulation is expected by April 2025.
- Failure to comply will result in the Italian Tax Authority initiating:
- VAT number deactivation for fiscal representatives.
- Exclusion from the VIES database for non-EU entities.
Notifications of non-compliance will be sent via certified email (PEC) or registered mail. If corrective actions are not taken within 60 days, the penalties will be enforced.
How VAT IT Compliance Can Help
VAT IT Compliance offers a comprehensive solution to meet these new requirements, including the provision of the guarantees mandated by the Italian Tax Office. With a proven track record in global VAT compliance, VAT IT Compliance ensures that your business remains compliant while simplifying the complex administrative burden associated with these changes.
Don’t let the new regulations disrupt your operations. Partner with VAT IT Compliance to stay ahead of these updates and maintain seamless VAT compliance across borders.
You can also find further information about VAT in Italy in our country guide.
Contact VAT IT Compliance today to learn more about how we can assist with these new obligations.
