{"id":60463,"date":"2018-10-19T00:00:00","date_gmt":"2018-10-19T00:00:00","guid":{"rendered":"https:\/\/blog.hellotax.com\/blog\/taxation\/vat-threshold\/italy\/"},"modified":"2025-06-25T20:47:36","modified_gmt":"2025-06-25T18:47:36","slug":"vat-threshold-in-italy","status":"publish","type":"post","link":"https:\/\/hellotax.com\/blog\/vat-threshold-in-italy\/","title":{"rendered":"VAT Threshold in Italy"},"content":{"rendered":"\r\n

There were once specific threshold limits for every European country. Since those limits have been replaced by an EU-wide threshold in July 2021, knowing when additional VAT numbers are required as well as keeping track of distance sales and the respective turnover is crucial. Here is what you need to know about the VAT threshold in Italy.<\/p>\r\n\r\n\r\n\r\n

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VAT Threshold Limit: Italy<\/h2>\r\n\r\n\r\n\r\n

Storing in a country, having a business there, or similar issues can require having a local VAT number.\u00a0So, can reach the annual threshold limit via\u00a0Distance Selling<\/a>.<\/span> That means exceeding an inevitable annual turnover when selling from one EU country to another.<\/p>\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n

In the past, if the amount of goods you sold to a foreign country reached a specific country-specific limit, a VAT registration<\/a> in the country you are selling to became necessary.<\/p>\r\n\r\n\r\n\r\n

Country-specific VAT thresholds were abolished<\/strong> in July 2021, and a EU-wide threshold for distance selling of \u20ac 10,000<\/strong> took their place. Only sales above the threshold are taxed with the foreign VAT rate and VAT is paid in the corresponding country. All sales below the \u20ac10,000 mark are still taxed at the local VAT rate and VAT is paid in the home country.<\/p>\r\n\r\n\r\n\r\n

Here\u00a0is\u00a0an\u00a0example\u00a0of the VAT Threshold in Italy<\/strong>:<\/p>\r\n\r\n\r\n\r\n

You are an online seller based in Germany and sell to several European countries. Under the old rules, Italy had a national threshold of \u20ac35,000. However, since July 1, 2021<\/strong>, this has been fully replaced by an EU-wide threshold of \u20ac10,000<\/strong> for cross-border B2C sales. Once this threshold is exceeded in total across all EU countries<\/strong>, sellers must charge the destination country\u2019s VAT rate and register there if not using OSS.<\/p>\r\n\r\n\r\n\r\n

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However, a sales volume of \u20ac 35,000 is already above the new \u20ac 10,000 threshold. The first \u20ac 10,000 is still taxed with the German VAT rate, and VAT needs to be paid in Germany. However, any additional sale exceeding \u20ac 10,000 must now be taxed with the Italian VAT rate, and VAT is due in Italy.\u00a0Registration<\/strong><\/span>\u00a0for VAT and filing of VAT returns in Italy<\/strong> is also necessary.<\/p>\r\n\r\n\r\n\r\n

Attention:<\/strong> the new VAT threshold of \u20ac 10,000 applies across the EU<\/strong>. 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<\/p>\r\n<\/div><\/div>\r\n\r\n\r\n

Important Update (2025):<\/strong>
With the VAT in the Digital Age (ViDA)<\/strong> reforms passed in March 2025<\/strong>, tax authorities across Europe are enhancing real-time monitoring<\/strong> and cross-border VAT enforcement<\/strong>. This makes it even more important to monitor distance sales, track when the \u20ac10,000 threshold is passed, and ensure VAT registration or OSS is in place before penalties arise.<\/p>\n

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Book a free consultation<\/h3>

Our VAT experts are happy to help you. Book a free consultation today!<\/p>\n

Free consultation<\/a><\/div><\/div><\/div>\n\r\n\r\n\r\n

VAT Threshold in Italy in USD & EUR<\/h2>\r\n\r\n\r\n\r\n

Selling below the thresholds means that no VAT registration is required; however, in case of reaching the threshold, you have to consider getting a VAT number<\/span>\u00a0in each of those countries<\/strong>.<\/span> The hellotax software gives a full overview of all threshold limits, VAT registrations, and reports.<\/p>\r\n\r\n\r\n\r\n

\r\n
\r\n\r\n\r\n\r\n\r\n
\u00a0<\/td>\r\nUS-Dollar<\/strong><\/td>\r\nEuro New EU-wide VAT threshold: (as of mid-2025, subject to exchange rates)<\/strong><\/td>\r\n<\/tr>\r\n
previous VAT threshold Limit in Italy<\/strong><\/td>\r\n~$37 800<\/td>\r\n35 000\u20ac<\/td>\r\n<\/tr>\r\n
new EU-wide VAT threshold <\/strong><\/td>\r\n~$10 800<\/td>\r\n10 000\u20ac<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table><\/div>\r\n<\/figure>\r\n\r\n\r\n\r\n

If the One-Stop Shop (OSS)<\/strong> is used, the \u20ac10,000 threshold still applies\u2014but sellers can avoid registering in multiple countries<\/strong>. Instead, they file one VAT return via their home country and apply the correct local VAT rates for each sale abroad. OSS greatly simplifies<\/strong> compliance for online sellers shipping B2C across the EU.<\/p>\r\n

Don\u2019t wait to register for VAT in Italy or activate OSS!<\/strong>
At hellotax<\/strong><\/a>, our local tax experts and automation tools help you track EU thresholds, register for VAT in all necessary countries, and simplify reporting through OSS or local filings<\/strong>.<\/p>\r\n

\ud83d\udc49 Book a free consultation<\/strong><\/a> today and let us take care of your VAT compliance across Europe.<\/p>\r\n","protected":false},"excerpt":{"rendered":"

There were once specific threshold limits for every European country. Since those limits have been replaced by an EU-wide threshold in July 2021, knowing when additional VAT numbers are required as well as keeping track of distance sales and the respective turnover is crucial. Here is what you need to know about the VAT threshold […]<\/p>\n","protected":false},"author":21,"featured_media":65834,"parent":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_lmt_disableupdate":"no","_lmt_disable":"","_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[5593],"tags":[],"class_list":{"0":"post-60463","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-vat-compliance","8":"entry"},"acf":[],"modified_by":"Brenda Varela","_links":{"self":[{"href":"https:\/\/hellotax.com\/blog\/wp-json\/wp\/v2\/posts\/60463","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hellotax.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hellotax.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hellotax.com\/blog\/wp-json\/wp\/v2\/users\/21"}],"replies":[{"embeddable":true,"href":"https:\/\/hellotax.com\/blog\/wp-json\/wp\/v2\/comments?post=60463"}],"version-history":[{"count":0,"href":"https:\/\/hellotax.com\/blog\/wp-json\/wp\/v2\/posts\/60463\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/hellotax.com\/blog\/wp-json\/wp\/v2\/media\/65834"}],"wp:attachment":[{"href":"https:\/\/hellotax.com\/blog\/wp-json\/wp\/v2\/media?parent=60463"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hellotax.com\/blog\/wp-json\/wp\/v2\/categories?post=60463"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hellotax.com\/blog\/wp-json\/wp\/v2\/tags?post=60463"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}