IVA – VAT in Italy: Rates, Registration and Compliance Guide 2026

The VAT tax, known in Italy as IVA (Imposta sul Valore Aggiunto), has been a key element of the Italian tax system since its introduction in 1972. Understanding the applicable rates and associated regulations is essential for any business conducting activities in Italy, particularly in the e-commerce sector. This guide provides an up-to-date overview of Italian VAT rates, invoice requirements, registration procedures, and Intrastat obligations as they stand in 2026.

VAT Rates in Italy

In 2026, five different VAT rates apply in Italy:

• 22% – the standard VAT rate
• 10% – the first reduced rate
• 5% – the second reduced rate
• 4% – the super-reduced VAT rate
• 0% – the zero rate

22% Standard Rate

The standard VAT rate of 22% applies to all goods and services that do not qualify for a lower rate, including electronics, clothing, most consumer goods, and general business services.

10% Reduced Rate

The 10% reduced rate covers, among other things:

• Selected food items
• Water supply
• Certain pharmaceutical products
• Domestic passenger transport
• Admission to cultural and sporting events
• Hotel accommodation, restaurants, and takeaway food
• Hygiene products for women and baby products such as car seats and diapers

5% Reduced Rate

The 5% reduced rate applies to, among other things:

• Selected food items
• Certain social services
• Selected passenger transport services

4% Super-Reduced Rate

The super-reduced 4% rate covers, among other things:

• Selected food items
• Medical devices for disabled people
• Motor vehicles for disabled people
• Selected books, newspapers, magazines, and e-books with ISBN
• Television licences
• Certain social housing
• Construction work on new buildings intended for first-time homes

0% Zero Rate

The zero VAT rate applies to:

• Intra-community and international transport
• Medical care

VAT Invoice Requirements in Italy

Italy operates a mandatory e-invoicing system (fatturazione elettronica) that has been in force since 2019. All VAT-registered businesses are required to issue and receive invoices electronically through the Sistema di Interscambio (SdI), the centralised platform managed by the Agenzia delle Entrate.

VAT invoices must be issued on the day of the delivery of goods or within 15 days after the end of the month in which the delivery took place. Invoices must be retained for ten years and include all of the following information:

• Date of issue
• Unique invoice number
• Supplier’s VAT number
• Full address of the supplier and the client
• Description of goods or services delivered
• Quantity of goods
• Date of delivery, if different from the invoice date
• Net value of the delivery
• Applicable VAT rates
• VAT amount broken down by rates
• Reference to regulations under which VAT is not charged, where applicable
• Total gross amount of the invoice

In some cases, the invoice should also include details of the supplier’s tax representative. For transactions below €100, a simplified invoice may be issued.

VAT Registration in Italy

Registration Threshold

There is no registration threshold for non-resident businesses in Italy — registration must be completed before commencing any taxable activities. For cross-border distance sales into Italy, the EU-wide threshold of €10,000 applies, after which businesses must either register for VAT in Italy or use the EU VAT OSS (One Stop Shop) scheme. Note that the obligation to register for VAT in Italy may also arise from other factors, such as storing goods in Italy.

Documents Required for VAT Registration

To register for VAT in Italy, businesses must submit specific declarations including the Dichiarazione and Identificazione Diretta Ai Fini IVA Di Soggetto non residente. Non-EU businesses must appoint a tax representative and provide an appropriate power of attorney.

VAT Identification Number

The Italian VAT number consists of 11 digits with the prefix IT — for example, IT12345678901. The first 7 digits identify the taxpayer, digits 8 and 9 correspond to the tax office, and the final digit is a check number.

VAT Payer Obligations

All VAT-registered businesses in Italy must submit:

• Quarterly VAT communications (Comunicazione Liquidazioni Periodiche IVA — LIPE) by the last day of the second month following the end of each quarter
• Annual VAT return (Dichiarazione IVA annuale) by 30 April of the year following the reporting period

Penalties and Interest

Omitted or late payments of taxes result in a penalty equal to 25% of the unpaid or late-paid tax. Where the delay is within 15 days, the penalty is 0.83% per day up to a maximum of 12.5%. An interest charge of 2.5% per year also applies. In the case of delayed refunds, fines can exceed 240%. Failure to file an annual return results in a penalty of 120% of the taxes due.

Intrastat Reporting in Italy

Italy uses a combined Intrastat and EC Sales List system, meaning both obligations are fulfilled in a single filing. The reporting thresholds and obligations differ depending on the type of transaction.

Purchases of Goods (INTRA-2 Bis)

From February 2026, monthly Intrastat filing for intra-EU purchases of goods is required only if the value of intra-EU acquisitions reached or exceeded €2,000,000 in at least one of the four preceding calendar quarters. This replaces the previous threshold of €350,000.

Sales of Goods (INTRA-1 Bis)

Sales of goods to other EU member states (INTRA-1 Bis) are reportable regardless of value, once intra-EU supplies are made.

Purchases of Services (INTRA-2 Quater)

Purchases of services from other EU member states are reportable once the €100,000 threshold per quarter is exceeded.

Sales of Services (INTRA-1 Quater)

Sales of services to other EU member states are generally reportable irrespective of value, where the place of supply is in another EU member state under the B2B general rule.

Intrastat declarations must be filed monthly by the 25th of the month following the reporting period.

Contact with the Italian Tax Authority

Agenzia delle Entrate

• Address: Rome, via Cristoforo Colombo n. 426 C/D – 00145
• Website: Agenzia delle Entrate
• Phone: +39 0696668933

Summary

The Italian VAT system applies five tax rates and imposes detailed compliance obligations including mandatory e-invoicing, quarterly LIPE communications, annual VAT returns, and Intrastat reporting. Businesses operating in the e-commerce sector must stay on top of updated thresholds — particularly the significantly raised Intrastat threshold for goods purchases, now €2,000,000 per quarter — to avoid penalties and ensure smooth operations. If you have any questions or need additional information, our team of experts is ready to help: Contact us – amavat®.