VATLive > Blog > Italy > Italy VAT non-resident reverse charge update

Italy VAT non-resident reverse charge update

  • Feb 26, 2020 | Richard Asquith

The Italian Agenzia delle Entrate has issued updated regulations on the application of the reverse charge rule for non-residents.

The reverse charge simplified the VAT compliance procedure between buyers and sellers, and is typically used on cross-border supplies of goods and services. In Italy, it is also applied from domestic supplies where the seller is a non-resident business, even if the supplier is Italian VAT registered for other reasons. This applies to both EU and non-EU suppliers not established in Italy. For non-EU suppliers, the Italian business must issue a self-invoice.

In the case of an Italian supply a non-Italian customer is obliged to register to report the reverse charge mechanism.

Need a fiscal representative in Italy?

Non-EU businesses selling in Italy will need to appoint a fiscal representative alongside completing VAT registration and returns.
Fiscal representatives are responsible for the accurate VAT submissions of their non-EU clients.
Avalara offers a Fiscal Representative Service as part of its international VAT and GST Registration and Returns Service.

Need help with your Italian VAT compliance?

Researching Italian VAT legislation is the first step to understanding your VAT compliance needs. Avalara has a range of solutions that can help your business depending on where and how you trade. 

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VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.
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