Fiscal representative in Italy
Italy requires businesses from outside the European Union (EU) to appoint a local fiscal representative for both non‑resident VAT registrations and VAT refund applications. The fiscal representative must register with the Italian tax authorities and is jointly and severally liable for the non-EU business’s VAT compliance and liabilities.
Non‑EU businesses using a fiscal representative must submit a financial guarantee of at least €50,000 to maintain VAT Information Exchange System (VIES) registration for intra‑EU transactions. This guarantee is valid for 36 months and acts as a financial safeguard for Italian tax authorities to ensure that the company has sufficient backing to meet VAT liabilities.
Fiscal representatives themselves must provide a declaration on honour (per Ministerial Decree No. 164/1999) stating that they have no serious tax infractions or criminal record. They must also submit a scaled guarantee, ranging from €30,000 to €2 million. The scaled guarantee is valid for 48 months and the amount of the guarantee is determined by the size of the representative’s client base. Furthermore, fiscal representatives are subject to fines for non-compliance ranging from €3,000 to €50,000.
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