VAT Returns – Italy

Italy

VAT Name :
Imposta sur Valore Aggiunto (IVA)

VAT Number Format :
12345678901 (11 digits)

VAT Information Offices :
Ministero dell’Economia e delle Finanze – Call Centre only (+39) 848 800 444

RATES

RateTypeWhich goods or services
22%StandardAll other taxable goods and services
10%ReducedAdmission to sports events and cultural services; Some passenger transport; Pharmaceutical supplies; Water supplies
5%ReducedSome social services
4%ReducedCertain foodstuffs; Certain medical equipment for disabled persons; Certain books; Newspapers and periodicals; E books
0%ZeroMedical and dental care; Certain social services; Certain services of writers and composers; Passenger transport

EXEMPTIONS

  • Leasing and letting of immovable property
  • Letting of residential property (excluding short term letting) (letting of certain private dwellings is excluded)
  • Letting of commercial property (subject to conditions)
  • Financial services
  • Supply of land
  • Option to tax can apply in certain cases to leasing and letting of immovable property, and supply of buildings and land

THRESHOLDS

Registration Threshold : varies between EUR 25.000 and EUR 50.000 depending on type of activity
Distance Selling Threshold : EUR 35.000
Dispatches : Nil
Arrivals : Nil
Intra-Community Acquisition Threshold : EUR 10.000
VAT Free Shopping for Tourists : EUR 154,94

PENALTIES

Late Filing : If submitted within 90 days after the deadline, EUR 25 fixed fine; after 90 day, EUR 285 min penalty and between 120%-240% of the VAT due
Late Payment : General penalty 30% subject to reductions for prompt payment or before due deadline day for annual return. Interest will apply.

Other :
– Late filing and late payment penalties are added together when a VAT return is not submitted nor paid to the tax office.
– Penalties may apply in cases of tax fraud, evasion, etc.

DEADLINES

Assessment Period : 6 years (can be extended to 10 years for tax prosecution cases). Under specific circumstances, the assessment period can be extended.
Standard Tax Period : Monthly and quarterly VAT calculations

Service providers whose annual turnover is < EUR 400.000 and other taxable persons whose annual revenues are < EUR 700.000, use quarterly calculations.
ESL and Intrastat mostly monthly when intra-EU trade exceeds EUR 50.000 in current or previous 4 quarters. Some quarterly filing.
– both 25th working day following the reporting period.