VAT Registration in Italy

If you want to set up a company and are interested in VAT registration in Italy, this article can help you. Please review the key requirements for local and foreign companies, then contact our specialists in company formation in Italy for in-depth guidance.

What companies need to register for VAT in Italy?

These types of companies must register for VAT in Italy:

• importing goods to Italy or buying and selling goods in Italy,
• having a branch (permanent establishment) in Italy,
• carrying out intra-Community acquisitions of goods in Italy.

How can I register a foreign company for VAT in Italy?

• the process starts at the Italian Revenue Agency, accessing the single business reporting platform,
• one must choose the ATECO code in accordance with the activities,
• non-EU companies must appoint a local fiscal representative (EU companies may register directly). He or she will manage the VAT registration process in Italy,
• the documents of the foreign company are solicited (Articles of Association, certificate of Incorporation, etc.),
• the ANR/3 form (direct identification) or the AA7/AA9 form (via fiscal representative) is submitted to Agenzia delle Entrate, etc.

NOTE: The Italian Identification Number, or Codice Fiscale, is issued after the submission of documents and confirmation of VAT registration.

Please explore this infographic with details on Italian VAT:

What is the VAT threshold in Italy in 2026?

• no registration threshold; sole traders & freelancers in the flat-rate (forfettario) regime with revenues up to EUR 85,000/year do not charge VAT,
• no threshold for local and foreign companies, as VAT registration is mandatory from the first day of activity.

How do I register a local company for VAT payment in Italy in 2026?

The formalities are the same as for international companies, except that there is no need for a fiscal representative. However, the registration process is much simpler if you work with a tax agent or advisor, such as one of our experts.

What are the VAT rates in Italy in 2026?

The VAT tax rates in Italy are the following:

• 22% is the standard VAT rate applicable to many common goods and services offered by companies.
• 10% is applicable to water supplies, pharmaceutical products, and admission to cultural services (cinema, theatre, shows).
• 5% applies to the transport of passengers (in some cases) and to certain types of foodstuffs for which the 4% rate does not apply.
• 4% applicable to some foodstuffs, medical equipment, books, newspapers, periodicals, etc.

Here is a video presentation with information about VAT registration in Italy:

Are there any VAT exemptions in Italy?

VAT exemptions apply to medical services, export sales, the contribution of assets to a company, and others.

Do companies in Italy submit VAT returns?

Of course, this is mandatory. Here are some VAT obligations in Italy:

• maintaining VAT records,
• paying the VAT on time,
• filing annual VAT declarations,
• conforming to electronic reports, etc.

IMPORTANT: Companies can face penalties & fines if VAT payments and reporting are not made on time.

Are there any precautions or updates to consider regarding VAT registration in Italy for 2026?

• in Italy, the threshold for filing Intrastat reports on intra-EU acquisitions of products is now EUR 2,000,000,
• a novelty in 2026 concerns the omission of annual VAT returns. As such, the Italian Revenue Agency will immediately calculate VAT accountability
• using data from the existing e-invoicing portal, periodic reporting, and digital cash registers of companies selling goods.
• the Consolidated VAT Act (Testo Unico IVA, Legislative Decree No. 10/2026), published in January 2026, aims to combine VAT legislation for proper and fast application in 2027

If you need more information on VAT in Italy in 2026, our specialists in company incorporation in Italy can provide any specific details. Plus, our accountants in Italy can help you with VAT formalities and offer payroll services at affordable prices. Contact us for assistance in setting up a company in Italy.