Italy VAT Rates and Registration Guide

Italy VAT Rates at a Glance (2025)

Italy applies four non-zero IVA rates under D.P.R. 633/1972, as confirmed by the Agenzia delle Entrate (updated 20/09/2024). The standard 22% rate applies to all goods and services not explicitly listed in the reduced-rate annexes.

*Italy IVA rates, 2025 (D.P.R. 633/1972 + Agenzia delle Entrate, updated 20/09/2024). *

The 10% reduced rate covers essential services that form part of everyday economic life: accommodation, public utilities, and basic passenger transport. The 4% super-reduced rate targets cultural and accessibility goods.

Which VAT rate applies to B2B services in Italy?

Most B2B professional, consulting, and IT services are subject to the standard 22% IVA rate. When a non-established supplier provides services to an Italian VAT-registered customer, reverse charge may shift the accounting obligation to the customer rather than the supplier. Reverse charge is covered in detail in a later section.

What Is a Partita IVA? Italy's VAT Number Explained

In Italy, VAT is called IVA (Imposta sul Valore Aggiunto). The Italian VAT number is the Partita IVA, an 11-digit code assigned by the Agenzia delle Entrate. For EU cross-border transactions validated through VIES, the prefix "IT" is added before the 11 digits.

The Partita IVA serves as both the company's VAT identifier and its general tax reference number. For an Italian SRL, the same number functions as the company's codice fiscale for most purposes. Any business commencing taxable activity in Italy must obtain a Partita IVA and file a declaration of commencement within 30 days of starting that activity.

For more detail on the Partita IVA format and how it is issued, see our guide to Partita IVA (what it is and how to obtain it).

How to Register for Italian VAT: Three Paths

The registration route depends on whether the business is an Italian resident company, an EU entity without an Italian permanent establishment, or a non-EU entity. The table below summarizes each path.

Path 1: Italian SRL (Resident Company)

For a company incorporated in Italy, VAT registration is automatic. There is no separate queue or application.

1. Incorporate the SRL via a notarial deed (atto costitutivo + statuto).
2. The notary lodges the Comunicazione Unica with the Registro Imprese; form AA7/10 is included in that filing.
3. The Agenzia delle Entrate issues the Partita IVA, typically the same day or the next business day.
4. If the SRL will conduct intra-EU transactions, separately request VIES authorization as an "operatore intracomunitario" with the Agenzia delle Entrate.

From our practice: when we incorporate an SRL for foreign founders, the Partita IVA is issued as part of the same-day Comunicazione Unica filing. There is no separate VAT queue. See our SRL formation service.

Path 2: EU Non-Resident Without a Permanent Establishment

An EU-established company with no Italian permanent establishment can register for Italian VAT directly, without forming a local entity.

1. Complete form ANR/3 (application for direct identification).
2. File the form with the Centro Operativo di Pescara, the specialized Agenzia delle Entrate office that handles non-resident registrations.
3. Once processed (typically several weeks), an IT-prefixed Partita IVA is issued.
4. The company then becomes subject to all Italian VAT compliance obligations: LIPE quarterly communications and the annual IVA return.

Path 3: Non-EU Entity (Including US Companies)

Non-EU entities cannot use the direct identification route. Form ANR/3 is available only to businesses established in an EU member state. A US company or any other non-EU entity must appoint an Italian fiscal representative, an Italian resident who assumes joint and several liability for the company's Italian VAT obligations.

The fiscal representative then registers on behalf of the non-EU company using the appropriate forms filed with the Agenzia delle Entrate. Forming an Italian SRL eliminates this requirement entirely: an incorporated Italian company is a resident entity and follows Path 1.

For foreign founders who intend to operate in Italy on a recurring basis, forming an SRL is typically more cost-effective than maintaining a fiscal representative over time. See our overview of Italian accounting and tax services for the full compliance picture.

VAT Number Validation: How VIES Works

VIES (VAT Information Exchange System) is the European Commission's online tool for validating VAT numbers across EU member states. To confirm an Italian VAT number, enter the "IT" prefix followed by the 11-digit Partita IVA at the VIES portal. A positive VIES result confirms that the supplier is a valid intra-community operator, which is required to apply zero-rate treatment on intra-EU B2B supplies.

An important distinction that most guides omit: obtaining a Partita IVA and being authorized as an intra-community operator in the VIES archive are two separate steps. A newly registered Italian business with a valid Partita IVA is not automatically visible in VIES. To conduct intra-EU transactions at the zero rate, the business must separately request inclusion in the VIES archive ("operatore intracomunitario" authorization) with the Agenzia delle Entrate. Without this authorization, intra-EU zero-rating cannot be applied, even if the underlying Partita IVA is valid.

SRLs engaging in EU B2B trade should request this authorization at the time of incorporation to avoid delays when issuing or receiving intra-EU invoices.

Italian VAT Filing Obligations: LIPE and the Annual Return

All Italian VAT-registered businesses must submit periodic VAT communications and an annual IVA return. The two obligations are separate: the quarterly LIPE communications summarize periodic VAT settlements, while the annual return reconciles the full year. Missing either obligation carries penalties under D.P.R. 633/1972. For the broader tax compliance calendar, including Italian corporate tax (IRES and IRAP rates), see our dedicated guide.

Quarterly LIPE Communications

LIPE (Comunicazione Liquidazioni Periodiche IVA) was introduced by D.Lgs. 127/2015. Most businesses file quarterly, with the following deadlines:

**

Businesses exceeding €700,000 in annual turnover from goods, or €400,000 from services, must file monthly rather than quarterly. LIPE is submitted electronically through the Agenzia delle Entrate's online services.

Annual IVA Return (Dichiarazione Annuale IVA)

The annual IVA return (dichiarazione annuale IVA) covers the previous calendar year and must be filed electronically between 1 February and 30 April. Submission is through the Agenzia delle Entrate's portal. This return is separate from, and in addition to, the quarterly LIPE communications filed throughout the year.

E-Invoicing via SDI: Mandatory Since 2024

Since 1 January 2024, e-invoicing via the government's SDI (Sistema di Interscambio) platform is mandatory for all Italian VAT-registered businesses. This obligation applies to Italian SRLs and also to non-resident companies that hold an Italian Partita IVA through direct identification or fiscal representation.

Invoices must be issued in XML format, transmitted through the SDI gateway, and archived electronically. The legal basis is D.Lgs. 127/2015. Businesses that are not yet set up for SDI-compliant invoicing should address this before commencing taxable activity in Italy.

Reverse Charge in Italy: When Does It Apply?

Reverse charge shifts the VAT accounting obligation from the supplier to the customer. In Italy it applies in two main situations, both grounded in D.P.R. 633/1972 as implementing legislation for EU Directive 2006/112/EC:

• Domestic reverse charge (Art. 194 EU VAT Directive): when a non-established supplier provides goods or services to an Italian VAT-registered customer, the customer self-accounts for the VAT rather than the supplier charging and remitting it. This means a foreign company without an Italian Partita IVA can supply to Italian businesses without collecting Italian VAT directly.
• Cross-border B2B services (Art. 196 EU VAT Directive / Art. 44 general place-of-supply rule): for most B2B services, the place of supply is the customer's country. The customer applies reverse charge to account for VAT under their local rules. An Italian SRL receiving services from a foreign supplier will generally self-account for Italian IVA at 22% on those invoices.

Understanding reverse charge is especially relevant for US companies selling services into Italy: if their Italian clients are VAT-registered, no Italian Partita IVA is needed on the supplier side for those transactions.