VAT stands for Value Added Tax, it is a tax levied on consumption of goods and services within the Italian borders.
WHO PAYS VAT?
VAT is paid by the final consumer; however, any business has to charge VAT on its products/services and can claim input VAT on products/services purchased.
WHICH VAT BRACKETS ARE CURRENTLY VALID IN LEVIED IN ITALY?
The Italian VAT system has currently three brackets:
- 4%
- 10%
- 22%
Some activities are VAT exempt.
Who has to register VAT? Applying for a vat number italy
Theoretically, any business that sells items and/or provides services in Italy has to register for VAT, the registration process can be made online with no fees.
Despite this general obligation there are some favourable tax regimes that disallow the VAT registration; these are:
- Regime forfettario
- Regime dei minimi agricolo
VAT OBLIGATIONS
Once your entity is VAT registered in Italy, it has to file several returns and pay any outstanding VAT liability either quarterly or monthly.
VAT CALENDAR
If the filer is monthly, any VAT liability is due on/before the 16th of the following month. If the filer is quarterly, VAT liabilities are due as follows:
- I quarter due on/before May 16th
- II quarter due on/before August 16th
- III quarter due on/before November 16th
- IV quarter due on/before March 16th (of the following year)
On top of it, on/before December 27th every VAT entity has to pay a prepayment, which will be subtracted to the March 16th payment.
On top of the liabilities payments, the following returns have to be filed:
- Yearly VAT return on/before April 30th
- Quarterly VAT liquidation on/before May 31st, September 18th, November 30th, and February 28th
- Spesometro on/before September 18th and February 28th.
IF I BUY/SELL ABROAD HOW DO I PAY VAT?
International operations are VAT excluded (therefore no VAT is levied); however, if the sales is performed within the EU, you have to file the INTRASTAT model.
IF I AM LATE OR OMITT ANY DEADLINE, WHICH SANCTIONS APPLY?
The follow list includes only some of the possible sanctions.
Omitted Yearly return:
- from 120% to 240% of any tax due, minimum € 258 up to € 2.056.
Omitted Intrastat:
- from 120% to 240% of any tax due
Unfaithful Yearly return:
- from 100% to 200% of any tax avoided
Omitted or incomplete VAT variation communication
- from € 516 to € 2.065
Wrong input VAT claim
- 100% of claim
HOW CAN WE HELP?
Accounting Bolla has helped many businesses in disentangling VAT implications, especially when operating in multiple jurisdiction; Accounting Bolla provides the following services:
- Advisory on the VAT regime applicable
- VAT direct registration
- Accounting and bookkeeping
- VAT returns and mandatory declaration
- VAT refunds
Ciao Nicole,
We are a family of five who have recently moved to Italy from the States. We attempted to purchase a few small gifts from Amazon for a some people we know here. As we were checking out, we noticed a 22% VAT was added to our cart. If we send the same items to our mail service in the U.S. and have them forward the box to us will we still incur the VAT? Thank you!
Depends on the value of the item, if less than € 45 there should be no VAT. However, watch out for custom duties
We are a group of 10 travelers from the United States. We will be spending a month in Italy and will be touring and tasting many wineries in the region. If we purchase wines at a winery for direct shipment to the U.S. are we charged a VAT tax on those items? If so, what is the percentage rate on wine and how do we retrieve our VAT?Thank you for taking my question.
if you buy the items in the capacity of a business (LLC) you are not charge VAT, alternatively yes