Italy Sales Tax VAT

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This national tax rate is called IVA (Imposta sul Valore Aggiunta) in Italian, but is also known (as are all such national taxes around the world) by its English-language acronym VAT (for “Value Added Tax,” which is essentially what “IVA” means). The stndard rate is 22%

There are strict rules for companies who have received an Italian VAT registrations.  These mirror the EU’s VAT Directive. and include

  • Basic information required for Italian VAT Invoices.
  • Process and approvals for the use of e-invoices, including compliance and control procedures with the signature and authenticity of an invoices.
  • Preparation of bookkeeping records, known as VAT Registers in Italy.  Accounting data must be retained for
  • Correct invoicing of customers for goods or services in accordance with the Italian time of supply VAT rules.
  • Treatment for credit notes and other corrections.
  • Use of approved foreign currency rates.

Reduced rates of VAT in Italy are as follows:

10% Some foodstuffs; water supplies; some pharmaceutical products; domestic passenger transport; admission to cultural events; some social housing; renovation and repair of private dwellings; some supplies and construction work for new buildings; some agricultural supplies; hotel accomodation; restaurants; admission to certain sports events; energy products (excluding district heating); firewood; collection of domestic waste; some waste water treatment; alcoholic beverages in bars and cafes; take away food; cut flowers and plants for decorative use and food production.

5% Some food stuffs and retail.

4% Some food products; certain medical equipment for disabled persons; certain books; newspapers and some periodicals; e-books with an international standard book number (ISBN) ; online journals newspapers; TV licence; some social housing; some agricultural supplies; certain social services; motor vehicles for the disabled; some supplies for new buildings; construction work on new buildings for first housing).

0% Intra-community and international transport.

If you wish to apply for Sales Tax in Italy, please register in the form below the reasons for needing sales tax VAT in Italy or send us an email.