VAT rates in Italy
Value Added Tax (VAT), locally known as Imposta sul Valore Aggiunto (IVA), was introduced in 1972. The directives of the European Union in Italy (as one of the founding countries), have been integrated with the Spanish VAT legislation.
Italian Vat number legislation is the most important factor affecting the conduct of business in Italy. This also applies to the supply of goods or services. This is covered by the compulsory registration of a business as a VAT payer. Belonging to the Italian system also means that you have to comply with all VAT regulations and be regular in filing the relevant VAT returns.
Should you register for Italian VAT?
Foreign companies that are not Italian tax residents and that supply goods (to a lesser extent services) may face the requirement to register with the Italian tax authorities as a domestic taxpayer. Here are the standard situations requiring such steps:
-
importation of goods into Italy (whereas if the customer has previously registered as an Italian VAT payer - the supplier may not charge local VAT),
-
the purchase and sale of goods in Italy - when the supplier and the customer are not Italian companies previously registered for VAT (reverse charge principle),
-
the supply or acceptance of intra-community supplies or the receipt of goods (understood as acquisition) from other EU countries,
-
sale of goods to individual consumers via the Internet (subject to Italian distance selling registration threshold),
-
consignment of goods in Italian warehouses for delivery taking place in Italy (or in other EU countries),
-
charging admission fees (at the entrance) to events, exhibitions or conferences held live,
-
online transactions in the course of e-commerce with Italian consumers.