The sales tax in Italy or VAT, is called IVA (Imposta sul valore aggiunto) and it is 22% of any taxable sales, including raw materials.
All businesses must collect this Value Added Tax on behalf of the government, pay it quarterly or monthly (depending on the annual VAT turnover) and file the quarterly VAT return.
The last months of 2018 have seen a turmoil happening in Italy due to the new budget law that will take place form January 1st 2019.
Among the various measures the government is implementing in order to boost the economic growth and to reduce the tax dodging phenomenon, the most notable one is the E-invoicing.
If you are thinking that you already do that because you send all your client a paperless invoice and this measure does not affect you in any case, you have got it wrong.
Let me explain you why this affects you and how deal with it in the best possible way.
After moving back to Italy from the United States in 2013, I realized how much an accounting and tax firm was needed to help expats living in Italy to comply with the local tax regulations.