For any purchase or transaction carried in Italy a VAT tax is applied.
The IVA, VAT in Italian, is around 22% but it can vary according to the goods or services you buy. For all the info about this tax, read our article about sales tax in Italy.
The European Council Directive 2000/65/EC allows the VAT direct registration for any European based trading company wishing to sell products or services in a foreign EU country to individuals and other private entities.
This service is particularly useful for companies wishing to sell on e-commerce platforms across Europe.
The VAT direct registration allows the foreign entity to avoid a local Permanent Establishment and any income tax in the local country.
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.