VAT scope in Italy
In Italy, the Value Added Tax (VAT) applies to a wide range of goods and services. Here is an overview of the VAT scope in Italy:
​
1. Taxable Transactions: VAT is levied on the supply of goods and services carried out within the territory of Italy, including imports. This includes the sale or transfer of ownership of goods, provision of services, intra-community acquisitions, and imports from outside the European Union (EU).
​
2. Goods and Services: VAT is generally applicable to most goods and services, including but not limited to:
- Goods: This includes tangible items such as consumer goods, vehicles, machinery, and electronic devices.
- Services: This includes various services such as professional services, consulting, transportation, accommodation, restaurant services, telecommunications, and broadcasting services.
​
3. Exemptions and Reduced Rates: While most goods and services are subject to the standard VAT rate, Italy also has exemptions and reduced rates for specific categories. Some examples include:
- Exemptions: Certain goods and services may be exempt from VAT, such as healthcare services, education, financial services, and certain cultural activities.
- Reduced Rates: Some goods and services are subject to reduced VAT rates, which are lower than the standard rate. For example, essential goods like food, water, and medicines may be eligible for reduced rates.
​
4. Intra-Community Transactions: VAT also applies to transactions between Italy and other EU member states. This includes intra-Community acquisitions (purchases from other EU countries) and intra-Community supplies (sales to other EU countries). Special rules and reporting requirements apply to these transactions.
​
5. Registration and Compliance: Businesses involved in taxable transactions in Italy are generally required to register for VAT purposes. They must obtain a VAT identification number and comply with VAT reporting obligations, including filing periodic VAT returns and keeping proper records of their transaction
Quick navigation
VAT scope in Italy
VAT registration in Italy
VAT returns and refund in Italy
Italian reverse charge
Italian consignment or
call-off stock
Italian intrastat / EC sales list
Italian VAT compliance
- What Global Trade can help you with ?
-
VAT Registration: Businesses engaged in taxable transactions in Italy are generally required to register for VAT. This involves obtaining a VAT identification number from the Italian tax authorities. Registration can be done online or through a physical application.
-
VAT Rates and Invoicing: Familiarize yourself with the different VAT rates applicable to goods and services in Italy. Ensure that you charge the correct VAT rate on your sales and issue proper VAT invoices to your customers. The invoices must contain specific information required by the Italian tax authorities, including your VAT identification number.
-
VAT Returns and Payments: Registered businesses must file periodic VAT returns, usually on a quarterly basis, reporting their VAT transactions. The VAT return should include both output VAT (VAT charged on sales) and input VAT (VAT paid on purchases). The difference between output VAT and input VAT determines the VAT liability or refund.
-
Intrastat Declarations: If your business is involved in intra-Community acquisitions or supplies with other EU member states, you may have to submit Intrastat declarations. These declarations provide statistical information on the movement of goods between EU countries and help monitor trade within the EU.
-
Recordkeeping: Maintain proper records of your VAT transactions, including invoices, receipts, import/export documentation, and any other relevant documents. These records should be kept for at least ten years.
-
VAT Compliance Checks: Be prepared for VAT compliance checks by the Italian tax authorities. They may conduct periodic audits or inspections to verify the accuracy and completeness of your VAT reporting and transactions. Ensure that your records are organized and easily accessible for such checks.
-
VAT Refunds: If you are entitled to a VAT refund, follow the procedures outlined by the Italian tax authorities to claim the refund. This typically involves submitting a VAT refund application with supporting documentation.