Navigating VAT in Italy

This guide provides an overview of VAT in Italy, including applicable rates, registration requirements, compliance obligations, and filing deadlines. It is designed for businesses engaging in transactions within Italy.

Last Updated: January 2026

One

of the EU’s biggest VAT gaps lies in Italy, where billions in tax revenue go uncollected annually.

Italy at a glance.

Standard rate

22% VAT

Digital services VAT

Yes, at 22%

Mandate e-invoicing

Yes

Currency

Euro (EUR)

Zero-rated items

Intra-community and export transactions

VAT format

11-digit number

Fiscal representation

Yes, required for non-EU businesses in certain circumstances

Reclaiming VAT in Italy.

Reclaiming
VAT in Italy.

Foreign businesses that incur VAT on eligible expenses in the Italy may be able to reclaim it.

Who can reclaim?

Italy applies the rule of reciprocity. This means Italy allows VAT refunds for foreign businesses, but only if they are based in approved countries.

Eligible countries include:

Claimable expenses:

Entertainment 22%

Accommodation 10%

Food, drink & restaurant services *

Hiring means of transport 22%

Fuel 12%

Public Transport 10%

Taxis Non-reclaimable

Admission to fairs & exhibitions 22%

Training courses & seminars 22%

Goods 22%

Inter-company charges 22%

Office expenses 22%

Marketing costs 22%

Professional fees & AP invoices 22%

Entertainment

22%

Accommodation

10%

Food, drink & restaurant services

Hiring means of transport

22%

Fuel

12%

Public Transport

10%

Taxis

Non-reclaimable

Admission to fairs & exhibitions

22%

Training courses & seminars

22%

Goods

22%

Inter-company charges

22%

Office expenses

22%

Marketing costs

22%

Professional fees & AP invoices

22%

*Food, drink & restaurant services are only reclaimable in very limited circumstances.

VAT compliance in Italy.

VAT compliance
in Italy.

Doing business in Italy? You’ll need to play by the IVA’s VAT rules.

Who needs to register?

There are no registration thresholds. Any legal entity, whether established in Italy or otherwise, must register for VAT by submitting an AA7/10 Form within 30 days of commencing taxable economic activity in Italy.

VAT registration in Italy

VAT filing deadlines in Italy

Monthly

Last day of the following month

Quarterly

Last day of the second month following the quarter

Annual

April 30 of the following year

VAT payment deadlines in Italy

Monthly

16th day of the following month

Quarterly

16th day of the second month following the quarter

Annual

March 16 of the following year

Digital services in scope

Website supply, web-hosting, and maintenance
Software supply and updates
Provision of images, text, and information, and making databases available
Streaming or downloading of music, films and games
Political, cultural, artistic, sporting, scientific broadcasts and events
Distance teaching and e-learning

Things to note

Italy follows the EU’s ESS VAT rules. Businesses providing digital services (e.g., website hosting, software, digital media) must apply the VAT rate based on the consumer’s location, often utilizing the OSS system for cross-border services.

e-invoicing in Italy.

e-invoicing
in Italy.

Summary of the mandate in this country

B2G mandate in place

Yes

B2B mandate in place

Yes

B2C mandate in place

Yes

Obligation status: B2B e-Invoicing

Historic

B2B e-Invoicing model

Centralised Exchange Clearance Model

Name of exchange infrastructure

Sistema di Interscambio (SdI)

Format(s) used

XML FatturaPA, PDF (Visual)

FAQs

Can businesses still reclaim VAT in Italy if the VAT has been charged incorrectly?

If VAT in Italy has been charged incorrectly on an invoice, the entity would generally not be entitled to include the invoice in an Italy VAT refund. The entity would need to contact the supplier that charged the incorrect VAT in Italy and request a refund of the VAT in Italy that was incorrectly charged. This is something that VAT IT will be able to assist with. We can contact the supplier on your behalf and request a refund of the incorrectly charged VAT in Italy.

What is the standard deadline for submitting a VAT refund application in Italy?

An Italy VAT refund application should be submitted before 30 September of the year following the year in which the VAT in Italy was incurred, for a VAT refund in Italy under both the 8th Directive and 13th Directive. VAT refunds in Italy can be made quarterly and annually, however the claiming periods for Italy VAT refunds are not allowed to overlap with one another.

How long does it take to receive a VAT refund in Italy?

Processing times for a VAT refund in Italy can vary. Businesses reclaiming a VAT refund in Italy can expect it to take anywhere from a few months to a year, depending on the claim complexity and submission accuracy.

Nearby countries.

Explore indirect tax information in these countries:

Switzerland

France

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Navigating VAT in Italy

Navigating VAT in Italy

One

Standard rate

22% VAT

Digital services VAT

Yes, at 22%

Mandate e-invoicing

Yes

Currency

Euro (EUR)

Zero-rated items

Intra-community and export transactions

VAT format

11-digit number

Fiscal representation

Yes, required for non-EU businesses in certain circumstances

Monthly

Last day of the following month

Quarterly

Last day of the second month following the quarter

Annual

April 30 of the following year

Monthly

16th day of the following month

Quarterly

16th day of the second month following the quarter

Annual

March 16 of the following year

B2G mandate in place

Yes

B2B mandate in place

Yes

B2C mandate in place

Yes

Obligation status: B2B e-Invoicing

Historic

B2B e-Invoicing model

Centralised Exchange Clearance Model

Name of exchange infrastructure

Sistema di Interscambio (SdI)

Format(s) used

XML FatturaPA, PDF (Visual)

FAQs

Related content.

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