Key takeaways
- Italy VAT rates: The standard VAT rate is 22%, with reduced rates of 10%, 5%, and a super-reduced 4% rate, plus a 0% rate for certain transport and medical services.
- Registration threshold: There is no general registration threshold. The €85,000 limit applies only to the flat-rate scheme for individuals, while non-EU companies must appoint a fiscal representative.
- Filing & penalties: VAT returns are filed quarterly and annually, and late filings or payments can result in fines of 120% of the VAT due for a missing return and 25% for late payment plus interest.
Italy VAT key facts (2026)
| Item | Italy |
|---|---|
| Standard VAT rate | 22% |
| Reduced rates | 10%, 5%, 4% |
| Registration threshold (domestic businesses) | No general threshold (flat-rate scheme for individuals up to €85,000) |
| Registration threshold (non-resident businesses) | None – register from first taxable supply. €10,000 EU-wide distance-selling threshold for B2C sales (OSS available). |
| VAT return filing frequency | Quarterly LIPE reports plus annual return; VAT paid monthly (quarterly option) |
| E-invoicing status | Mandatory B2B and B2C via SdI since 2019 for Italian-established businesses |
| Fiscal representative required for non-EU businesses? | In some cases – non-EU businesses, unless from a country with a VAT mutual-assistance agreement |
Register for VAT in Italy with Taxually: CrossTax handles your Italy VAT registration, returns and fiscal representation.
Are you considering a business expansion into Italy? Then now is the perfect time to learn a little bit more about how the Italian VAT system works with our guide. Read on to find out about VAT laws and obligations when trading in Italy.
Updated October 2026: Italy's registration-threshold wording, LIPE and payment rules, post-2024 penalties and 2026 Intrastat thresholds are corrected, and new sections cover SdI e-invoicing, non-resident registration and key deadlines.
What is the Italian VAT rate?
Italian VAT (Value Added Tax) is known as Imposta sul Valore Aggiunto (IVA). The standard Italy VAT rate is 22%, but there are also two reduced rates of 10% and 5%, and a super reduced rate of 4%.
| Type of VAT | VAT Rate | Applicable Goods/Services |
|---|---|---|
| Standard VAT | 22% | All other taxable goods and services. |
| Reduced VAT rate | 10% | Products and services include water supplies, pharmaceuticals, hotel accommodation, and restaurants. |
| Reduced VAT rate (2) | 5% | Products and services include children’s products and certain foodstuffs. |
| Super Reduced VAT rate | 4% | Includes certain foodstuffs, drinks, medical equipment for disabled persons, books, newspapers, and agricultural products. |
| Zero rate VAT | 0% | Includes passenger transport, medical and dental care, and social services. |
Registering for VAT in Italy
Italy has no general VAT registration threshold. Businesses must register before they start taxable activity. The €85,000 limit applies to the flat-rate scheme (regime forfettario) for individual entrepreneurs, who do not charge VAT below it. If their revenue goes over €100,000 during the year, the scheme stops applying straight away.
From July 1, 2021, all EU member countries began operating under the same distance selling threshold of €10,000. So, if your company’s annual turnover for cross-border trade with an EU country exceeds €10,000, you will need to register for VAT in Italy. You will also have to register if you store products in Italy or participate in an FBA (Fulfilled-by-Amazon) program that includes Italy.
In order to receive an Italian VAT number in Italy, you must fill out and submit a "Declaration of Commencement, Change of Data, or Cessation of Activity" to the Italian Revenue Agency (Agenzia delle Entrate). The Declaration must include identification information as well as the sort of activity to be pursued and the location of the business.
Fiscal representation in Italy
It should be noted that non-EU companies selling in Italy will be required to appoint a fiscal representative, who will be jointly liable for the Italian VAT. Businesses established in the EU, or in a non-EU country with a VAT mutual-assistance agreement with Italy, can instead register directly using form ANR/3.
Italian VAT return filing and penalties
In Italy, VAT returns must be filed online on a quarterly basis using the Italian Target System via the Comunicazione Liquidazioni Periodiche IVA. Annual returns are compulsory for all companies registered for Italian VAT.
Quarterly periodic VAT reports (LIPE) are due by the end of the second month after each quarter, while for annual returns you need to file by April 30th. The VAT due must be paid every month, although businesses with prior-year turnover of up to €800,000 (€500,000 for service providers) can opt to pay quarterly, with 1% interest added to each payment.
Penalties were reformed for violations from 1 September 2024 (Legislative Decree 87/2024). A VAT return filed within 90 days of the deadline incurs a fixed €250 penalty. This can be cut to €25 by voluntary correction (ravvedimento operoso). A return filed later counts as omitted, with a penalty of 120% of the VAT due (minimum €250). Late payment of VAT is penalised at 25% of the unpaid amount, plus interest.
Italian Intrastat declarations
In Italy, both resident and non-resident businesses are required to submit Intrastat returns. From January 2026 data, monthly lists for intra-EU purchases of goods are only required if purchases reached €2,000,000 in at least one of the previous four quarters (up from €350,000). Sales of goods are listed quarterly, or monthly once they exceed €50,000 in a quarter. Monthly lists are due by the 25th of the following month.
Reverse charge in Italy
Designed to reduce the need for companies trading across Europe to VAT register, the reverse charge mechanism shifts the responsibility for reporting and paying VAT from the supplier to the recipient of goods or services. In Italy, the reverse charge applies to transactions involving EU cross-border supplies as well as specific industries.
E-invoicing and digital reporting in Italy
Italy has required electronic invoices for domestic B2B and B2C sales since 1 January 2019. All invoices go through the tax authority's Sistema di Interscambio (SdI) in the FatturaPA XML format.
- Who is covered: businesses resident or with a fixed establishment in Italy. Since January 2024 this includes flat-rate (forfettario) businesses of every size.
- Foreign businesses: non-established businesses are outside the mandate, even when they hold an Italian VAT number.
- Cross-border reporting: since 2022, Italian businesses report cross-border invoices through SdI instead of a separate monthly report.
- EU authorisation: the EU currently allows Italy to keep the SdI mandate until 31 December 2027 (European Commission eInvoicing factsheet). Further changes are expected under the EU's VAT in the Digital Age (ViDA) package.
How do non-resident businesses register for VAT in Italy?
Non-resident businesses must register before their first taxable transaction in Italy. There is no threshold. EU businesses can register directly. Other businesses usually need a fiscal representative.
- Direct identification: businesses established in the EU, or in a non-EU country with a VAT mutual-assistance agreement with Italy, file form ANR/3.
- Where to file: the Agenzia delle Entrate Operational Centre in Pescara, in person or by registered post.
- Documents: a copy of the signatory's ID and a certificate proving VAT status in your home country.
- Fiscal representative: the representative registers you in Italy and is jointly liable for your VAT.
Key VAT deadlines in Italy
- Monthly VAT payment: 16th of the following month.
- Quarterly payment (by option): 16th of the second month after the quarter, with 1% interest added.
- Quarterly LIPE report: end of the second month after the quarter. In 2026 the dates were 1 June, 30 September and 30 November.
- Annual VAT return: 30 April of the following year.
- Intrastat lists: 25th of the month after the period.
Frequently asked questions
What is the VAT rate in Italy?
Italy’s standard VAT rate is 22%, with reduced rates of 10% (for hotels, restaurants, and pharmaceuticals), 5% (for children’s goods and certain foodstuffs), and a super-reduced rate of 4% (for books, medical devices, and agricultural products). A 0% rate applies to transport and healthcare services.
When do I need to register for VAT in Italy?
Italy has no general registration threshold: businesses must register before they start taxable activity. The €85,000 limit applies only to the flat-rate scheme (regime forfettario) for individual entrepreneurs. Non-resident companies must register before their first taxable transaction. The EU-wide distance selling threshold is €10,000.
How do I register for VAT in Italy?
Businesses register by submitting a Declaration of Commencement to the Italian Revenue Agency (Agenzia delle Entrate), detailing business activity and location. Once approved, you’ll receive your Italian VAT number.
Do foreign businesses need a fiscal representative in Italy?
Usually. Non-EU companies are generally required to appoint a fiscal representative, who shares joint responsibility for VAT compliance and payment. Businesses established in the EU, or in a non-EU country with a VAT mutual-assistance agreement with Italy, can instead register directly using form ANR/3.
How often must VAT returns be filed in Italy?
- Quarterly – standard filing frequency
- Annual return – required for all VAT-registered businesses (due April 30)
Quarterly periodic VAT reports (LIPE) are due by the end of the second month after each quarter. Monthly VAT payments are the default, but businesses with prior-year turnover of up to €800,000 (€500,000 for service providers) can opt to pay quarterly, with 1% interest added to each payment.
Are Intrastat declarations required in Italy?
Yes. Intrastat returns are due for EU trade:
- Arrivals (purchases): from January 2026 data, monthly only if purchases reached €2,000,000 in at least one of the previous four quarters
- Dispatches (sales): quarterly, or monthly once they exceed €50,000 in a quarter
Monthly lists are due by the 25th of the following month.
Submissions are electronic via the Italian Customs Agency.
