Format, Threshold Limit, Application – The Italian VAT number

The world’s eighth-largest economy by nominal GDP offers many ways for future investments and businesses. To guarantee a safe start into business in Italy, a good preparation is necessary. We explain you in this article what you need to know about the Italian VAT.

What is a VAT number in Italy?

A P. IVA – an Italian VAT number is necessary in several cases. If you want to rent facilties or pay employees in Italy, but also if you simply want to invoice Italian customers, you will need an Italian VAT ID. But how can you obtain one of these numbers as a foreigner? The answer is more simple than the process itself: You will need to register for VAT in Italy.

When do I need to register for VAT in Italy?

Registration used to be necessary for two main reasons. The delivery threshold limit of 35,000 EUR per year and storage. Exceeding the threshold limit required a VAT registration. A VAT registration is also required if you intend to store goods in Italy.

Threshold limit

The Italian threshold limit used to bee set at 35,000 EUR per annum. By reaching or exceeding this annual limit as a trader from abroad, a VAT registration became necessary in Italy. For reaching this limit, the annual turnover of imports from the EU country you are selling from to Italy was decisive – the value of imports into Italy within one calendar year.

Country	Threshold Limit
Italy	35,000 EUR

Update: This regulation was changed on July 1st 2021. On that date a new EU-wide delivery threshold was introduced and replaced the country threshold. The new threshold is set at only 10,000 EUR and takes all intra-European sales into account. This means that sellers no longer have to monitor several thresholds at once, but become liable for VAT in every country they are selling to once the combined revenue through cross-border transactions passes the threshold limit of 10,000 EUR.

Be aware that in any case the registration for VAT in Italy takes time. To avoid falling back behind your business schedule and to avoid problems with the Italian tax authorities, apply early for your VAT number.

Storage of your goods in Italy

A VAT registration in Italy is also necessary when you store goods within the country’s borders. For a seller from abroad, intra-community shipments are free of tax. It is sufficient to proof these by pro-forma invoices. These regulations are still valid.

What is the name and format of the Italian VAT number?

The VAT number in Italy is called “Il numero di registrazione IVA”, short “P. IVA”. After the classic country code “IT” it is followed by 11 digits. Example: IT12345678901

Format of the Italian VAT Number:
Name	Il numero di registrazione IVA
Country Code	IT
Format	IT + 11 characters
Example	IT12345678901

How do I apply for a VAT number?

To apply for a VAT number in Italy, you need to contact the Italian tax office. Note that the Italian tax office only operates in Italian language. If you are not an Italian speaker, make sure to contact a translator or a representative to help you with your tasks. You can find the website of the Italian tax office here.

When you filled in all forms and added the documents required you need to send a signed hard copy to the following address:

Agenzia Entrate – Centro Operativo di Pescara

Area Controlli – Servizio identificazione non residenti

Via Rio Sparto, n. 21 – 65129 Pescara.

Tel: +39 085 5772245/49/65

Fax: +39 085 5772377

E-Mail: [email protected]

It takes several weeks to validate your application. Be sure to be on time to apply in time to not get into trouble with the Italian fiscal system.

An easier way to register for VAT in Italy is signing up for hellotax services. After signing up you will be allocated a registration assistant, who will step by step guide you through the registration process directly in the hellotax tax software. After the registration in the hellotax software you are finished. Why you ask? Because you will only need to submit your documents once. We translate them and reuse them for any registration necessary – now and in the future. This is especially practical in light of the new EU-wide threshold. Based on your transaction data we also let you know when you need a new VAT registration, apply for it, and let you know once we have received a new VAT number. You’ll never miss a deadline. Furthermore our team of local tax accountants can take care of VAT duties in foreign EU countries and can replace local tax advisors in Italy and beyond. They also take care of VAT returns in Europe! Book a call with our VAT experts to find out more.

When and how often do I have to file VAT returns?

In 2017, Italy underwent a large VAT reform. Before, only monthly and annual payments were required. Since the reform of 2017, quarterly payments are possible too. Businesses and taxpayers with a turnover of more than 700,000 EUR per year, are required to file their VAT returns monthly. With an annual turnover under 700,000 EUR, quarterly returns are possible. In any case, an annual VAT return is mandatory.

The deadline for quarterly returns is the last day of the second month which follows the quarter end. For example, May 31 for the VAT return of the first quarter. The annual return is due April 30 of the following year.

Can I find an Italian VAT number online?

The European Commission developed a tool called VIES for this very question. With this tool it is simple to find VAT numbers in Italy and all over the European Union. The tool is especially useful if you search for a VAT number of a business you intend to cooperate with. You can check easily whether the company has a legal VAT number. If that is not the case, it might also cause trouble to your own company because working with a company with no legal VAT number is against tax law.

Find VIES here: VIES VAT number validation

In case, the VAT number you are looking for is not displayed correctly, there might be several reasons:

• The registration process is not done yet
• The activation process is not done yet
• The number is not existent

It takes some time to activate and upload your individual number to the VIES database. Even if you already received your VAT number by the Italian tax office, it is possible that it is not displayed on the VIES website immediately. Do not worry at first and give it some time.

Summary

Exceeding the delivery threshold limit requires a VAT registration in Italy. This is also the case for the storage of goods in Italy.

You have to contact the Italian tax office for an application or simply leave us a message. Be aware that the authorities only operate in Italian Language so make sure to work with a translator and/or a representative.

FAQs