Fiscal representation in Italy: this is how the Italian representation in VAT matters works

Although companies based in the European Union no longer have to appoint a fiscal representative since 2004, a representation for VAT purposes in Italy is still helpful. In contrast, foreign companies must hire a representative. You can find all information about fiscal representation in Italy here.

What is a fiscal representation?

A fiscal representative is a service provider who represents foreign companies on a mandatory basis or EU companies on a voluntary basis in VAT matters. The following companies, among others, can act as fiscal representatives in Italy:

• Tax consultant
• Lawyers
• Chartered accountants and sworn auditors
• Notaries
• Forwarding companies, insofar as they provide assistance in matters of import duties

You can find more information on fiscal representation in the European Union on our overview page.

What does a fiscal representative do in Italy?

After his appointment, a fiscal representative takes care of all VAT obligations of the client in Italy. These include:

• Invoicing
• Registration of documents
• Periodic and annual liquidation of VAT
• Submission of annual and all other declarations required in Italy
• Payment of VAT

The representative is also responsible for the represented company towards the Italian authorities. This means that the fiscal representative is liable for penalties resulting from late VAT payments, for example. In practice, most fiscal representation providers therefore require an insurance policy to be taken out

When do I need a fiscal representation in Italy?

The appointment of a fiscal representative in Italy is mandatory if a non-European resident trader conducts economic transactions in Italy. These include:

• Selling goods or services to consumers (who do not have a VAT number)
• Selling goods or services to people who are considered consumers even though they have a VAT ID
• Selling goods or services to foreigners
• Special situations in connection with intra-community sales such as exceeding the EU-wide delivery threshold of € 10,000

Since 2004, sellers based in another country in the European Union have been able to take care of their VAT matters on their own and, for example, apply for a VAT identification number themselves. The appointment of a fiscal representative is therefore no longer mandatory.

However, the Italian deadlines for submissions and co. often differ from those of the home country, the forms to be filled out are written in Italian and the contact with the authorities takes place in the national language. For European companies, too, professional advice and representation in Italy can be worthwhile in order to meet deadlines, fulfill obligations, avoid penalties and simplify contact.

Appointment of a fiscal representative in Italy

The guidelines for the appointment of a fiscal representative in Italy can be found in Article 17 of Presidential Decree 633/72. According to that, a representative is appointed by filing one of the following documents:

• public document or
• registered private document or
• document certified by a foreign notary or
• letter entered in the special register in the form of Form VI or
• notification to the tax office in accordance with the provisions of Article 35 of Presidential Decree 633/72

The form of the appointment must comply with the design guidelines of Article 1 Paragraph 4 of Presidential Decree 441/1997 in order to overcome the presumption of the assignment of assets.

The documents must then be submitted to the Italian tax office responsible for the representative or representative and the authorized representative must submit a declaration of commencement of work. The agent is then subject to all duties and rights of the Italian VAT legislation.

Special case: the small fiscal representative in Italy

For sellers who store their goods in Italian warehouses, but do not sell from there, there is the possibility of appointing a so-called small fiscal representative. This applies to both EU-based and foreign companies.

In this case, the fiscal representative is only responsible for submitting the Intrastat declaration, but does not take care of the registration for VAT and VAT returns.

As soon as the commissioning sellers carries out active or passive transactions in Italy that make him liable for VAT, he must either register himself and apply for an Italian VAT identification number, or use a normal fiscal agency to take care of it.

Fiscal representation in other European countries

In principle, since 2004, companies based in the EU have not been required to be represented in other European countries. However, local legislation is always decisive, and representation in other European countries, such as Italy, can also be useful for EU companies.

More information on fiscal representations in Spain, Germany, France and co. have been summarized for you on our country-specific pages.

country	mandatory fiscal representation for non-EU companies and sellers
Germany	yes
Netherlands	yes
Austria	yes
Polen	yes
Czech Republic	no
Spain	yes
Italy	yes
France	yes

hellotax can not only help you as a representative in VAT matters in Italy. As a specialized service provider, we are active in several European countries. Our international team can take care of your VAT registration, filings and payments in a large number of European countries at the same time. Since our tax consultants work closely together and our clients receive all information bundled, your administrative and financial effort can be further reduced.

Contact us today and simplify the handling of your tax obligations.

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