There used to be certain threshold limits for every European country. Since those limits have been replaced by an EU-wide treshhold in July 2021, knowing when additional VAT numbers are required as well as keeping track on distance sales and the respective turnover is crucial. Here is what you need to know about the VAT registration threshold in Italy.
Antonia Klatt
Last Updated on 22 October 2021
VAT Threshold Limit: Italy
Storing in a country, having a business there or similar issues can require having a local VAT number. So can reaching the annual threshold limit via Distance Selling. That means exceeding a certain annual turnover when selling from one EU country to another.
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In the past, if the amount of goods you sold to a foreign country reached a certain country-specific limit, a VAT registration in the country you are selling to became necessary.
Country-specific VAT thresholds were abolished in July 2021 and a EU-wide threshold for distance selling of € 10,000 took their place. Only sales above the threshold are taxed with the foreign VAT rate and VAT is paid in the dorresponding country. All sales below the €10,000 mark are still taxed at the local VAT rate and VAT is paid in the home country.
Here is an example of VAT Threshold Limit in Italy:
You are an online seller based in Germany and sell to several European countries. Let’s assume you reach Italy’s previous annual threshold limit for distance selling, which was 35 000€. Now, you needed to get a VAT number to be able to take care of your future fiscal tasks as the place of taxation was now Italy and not Germany anymore.
However a sales volume of € 35,000 is already above the new € 10,000 threshold. The first € 10,000 are still taxed with the german VAT rate and VAT needs to be paid in Germany. However, any additional sale exceeding € 10,000 must now be taxed with the italian VAT rate and VAT is due in Italy. A registration for VAT and filing of VAT returns in Italy is also necessary.
Attention: the new VAT threshold of € 10,000 applies across the EU. That means that as soon as this threshold is reached overall, for example through sales to Poland, France and Italy combined, VAT registration is due in all of these countries at the same time. Individual thresholds no longer need to be reached in order to be responsible for VAT in foreign countries
Register for VAT in Italy
Submit VAT Return in Italy
Threshold Limit Italy in USD & EUR
Selling below the thresholds means that no VAT registration is required. However, in case of reaching the threshold you have to consider to get a VAT number in each of those countries. The hellotax software gives a full overview on all threshold limits, VAT registrations and reports.
| US-Dollar | Euro | |
| previous VAT treshhold Limit in Italy | ~$38 000 | 35 000€ |
| new EU-wide VAT treshhold | ~$11 900 | 10 000€ |
Update on VAT regulations: The new OSS process might be worth it for some active distance sellers. If the One-Stop-Shop is used, the EU-wide VAT threshold is not applicable but the VAT registration, filings of returns, and payment of VAT in serveral countries are significantly simplified. Hellotax can also help with OSS registration.
