VAT rates Italy

As an EU member state, Italy follows EU rules on value added tax (VAT) compliance. Like other member states, Italy sets its own standard VAT rate, provided it is above the EU minimum threshold of 15%.

The standard VAT rate in Italy is 22%. There are also reduced VAT rates of 10% and 5%, and a super-reduced rate of 4%. The 4% rate applies to essential goods such as basic foodstuffs, books, newspapers, and certain medical supplies.

Businesses registered for VAT in Italy must apply the correct VAT rate on their supplies of goods or services and remit the collected tax to the Italian tax authorities, Agenzia delle Entrate, by filing periodic VAT returns.

A small number of organisations — such as non-profits, religious bodies, and governmental institutions — and certain events like trade fairs are exempt from VAT. Businesses dealing with these entities should confirm applicable VAT treatment.

Non‑EU residents can reclaim VAT on purchases meeting minimum spend thresholds. As of 1 February 2024, that threshold in Italy was lowered from €154.95 to €70.01.

A valid VAT number is required in Italy for any business, professional, or agricultural activity — by both residents and non‑residents.

There is no domestic VAT registration threshold — any taxable activity requires registration.

For cross-border business-to-consumer (B2C) goods and services, the EU‑wide €10,000 One‑Stop Shop threshold applies and governs registration under the OSS scheme.

For more information on VAT registration in Italy, visit our Italian VAT registration page.

VAT-registered businesses in Italy are required to submit periodic VAT returns detailing the VAT charged on sales and the VAT paid on purchases. Returns are generally filed quarterly or monthly, depending on the taxpayer’s turnover. Monthly filings are mandatory for businesses with an annual turnover exceeding €700,000 for goods or €400,000 for services.

In addition to regular VAT returns, businesses must also file annual VAT returns and may be required to submit Esterometro reports for cross-border transactions and Intrastat declarations for trade within the EU. All filings must be submitted electronically to the Agenzia delle Entrate via the government’s digital platforms.

For more information on VAT returns in Italy, visit our Italian VAT returns page.

Foreign entities storing goods in Italy without a local permanent establishment may need to register for VAT to report arrivals/imports and subsequent local sales.

• Call-off stock: If goods are held under the single control of one Italian customer on a sale‑or‑return basis, foreign suppliers may not need Italian VAT registration. This relies on a formal stock agreement, the transfer of ownership within one year, and both parties’ VAT IDs known at dispatch.

• Consignment stock: When goods are stored under a foreign company’s control for multiple customers, the supplier must register for VAT in Italy. Domestic reverse charge rules may also apply.

• For goods imported from outside the EU, VAT registration may be required regardless of arrangement due to import reporting obligations.

How businesses can recover Italian VAT:

• EU businesses: Use the 8th Directive system, submitting refund claims via their own national tax portal. The deadline is 30 September of the year following the invoice date.

• Non-EU businesses: Use the 13th Directive, which requires a reciprocity agreement. U.S. businesses, for example, generally cannot reclaim VAT unless a reciprocity agreement exists. Claims must be filed by 30 June of the following year with supporting documents and a fiscal representative.

  
  

In some cases, EU-based non-VAT registered businesses may recover VAT via Article 38‑bis2, provided they only perform reverse-charge transactions and lack a local establishment.

Italy uses Intrastat filings to monitor the movement of goods and certain services between Italy and other EU member states. These filings help ensure VAT is properly accounted for across borders. Intrastat declarations must be submitted by Italian VAT-registered companies, whether resident or non-resident.

When is Intrastat required?

Intrastat is required when taxable goods or services cross Italian borders within the EU:

• Arrivals: Goods or services received from another EU country

• Dispatches: Goods or services sent to another EU country

  
  

Note: Imports from outside the EU and exports beyond the EU do not require Intrastat reporting.

Italian Intrastat thresholds

There are no thresholds for reporting acquisitions (arrivals) — all must be reported.

What to include in Intrastat?

Use Form INTRA 1, which includes:

• Customer’s VAT number

• Value of goods/services

• Country of origin/destination

• Product/service type using EU classification codes

  
  

Approval requirement

Foreign companies must first obtain written approval from the Italian tax authorities to be listed in the “Archive of Entities Authorized to Perform Intra-Community Transactions.”

This is a separate process from obtaining a VAT number.

Filing deadlines

Intrastat reports are generally due by the 15th of the month following the reporting period. Filing is monthly or quarterly, depending on trade volume.

Unlike many EU countries, Italy does not require a separate EC Sales List (ESL). All the required information is included in the Intrastat and high-value transaction reporting filings. This simplifies the compliance process, as businesses do not need to duplicate reporting efforts.

Registered businesses must abide by detailed invoicing, recordkeeping, and reporting requirements:

• Use VAT-compliant invoices with all mandated data.
• E-invoicing and real-time digital reporting are mandatory under the EU’s VAT in the Digital Age (ViDA) reforms from March–April 2025.
• Maintain VAT registers (bookkeeping).
• Apply correct tax point rules:
  • Goods: VAT arises when title passes or when transport begins.
  • Services: VAT generally arises on prepayment, invoice issuance, or service completion.
  • Real estate: When property-transfer contract is signed.
  • Imports: At import arrival or exit of duty suspension.
• Refunds are allowed via credit note protocols; foreign currency rate conversions must follow official approved rates.
• VAT returns and payments are due from the day after the reporting period closes until the statutory deadline.