VAT in Italy

1. What is the VAT in Italy?

In Italy, VAT is levied on the supply of almost all types of goods and services, as well as importation from outside the European Union. The general VAT rate in Italy is 20%. In some cases, the VAT has a reduced rate of 4% or 10% that may apply on basic products, while exports are zero-rated. 

2. How can I get a VAT refund in Italy?

VAT can be refunded in Italy and it is the way companies recover part of their expenses. In order to apply for a VAT refund in Italy, the owner of the company or a legal representative appointed by a power of attorney may submit a claim with the local tax authorities either at their office, or electronically. In both cases, the invoices must also be attached to the application, while a copy of the certificate issued by the tax authorities or other identification documents may be requested at the moment of submission. The refund must be received in less than six months after applying for VAT refund in Italy.

3. How can I register for VAT in Italy?

All companies must register for VAT in Italy with the tax office in the district where the company’s activity is performed. Anyway, the registration for VAT in Italy should not proceed later than 30 days after the company is established. The procedure is usually handled by an accountant or a legal representative in Italy. At first, a declaration form of business commencement must be completed. Secondly, the deed of corporation, the registration certificate of the company, an estimated annual turnover and information on the company’s activity must be provided to the tax office. The procedure of VAT registration in Italy is ended when a VAT registration number is issued. This number must appear from the registration moment on all invoices.

4. How does intra-community VAT work in Italy?

Italy is a member state of the European Union, therefore trading from Italy to another EU member state or vice versa is known as intra-community acquisition. Intra-community acquisitions are zero-rated in Italy in terms of VAT, as well as exportation of goods outside the European Union.

BridgeWest can offer detailed information how to open a company in Italy.