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Every Italian company has a VAT tax number (Partita IVA) on top of the company number. The two numbers are usually identical but there is an exception: if you have a non trading entity that cannot have a VAT number – such as a Representative office or a Light Branch – and you upgrade it to a company – such as a full Branch – the two numbers will always be different.
Contrary to other EU countries, getting a VAT number in Italy is quite fast. If the company formation is managed correctly, the company get its VAT number in 24-48 hours. Unfortunately the VAT number could be not enough to trade.
The new VAT regime in Italy
From 2011 the VAT number can be used to sell to Italian clients only. If you want to trade with foreign clients, you need to register your company in a second VAT Registry (in Italian “Registrazione del VIES“).
The main reason of the new regime is to prevent VAT frauds. As a result, all the existing Italian companies have been deleted from the online VAT Registry of the European Union, and they should apply again. This could be quite frustrating because the European Registry is used by your clients to be sure that you run a legitimate company. If they check – and if you haven’t get the VIES registration – they will not find your company, like if the company doesn’t exist.
In short, if you run an international business the VIES registration is a must. On the contrary, if all your clients are Italian, the traditional VAT registration is fine.
Who can register your VAT number in Italy and where
A) The first registration (Partita IVA) is usually managed during the company formation, by the notary public or by your lawyer. Any Italian company is required to apply for a VAT number, even if dormant.
The only exceptions are the entity that cannot trade: the Representative Office and the Light Branch (they can’t invoice thus they can’t have a VAT number. Only a company number).
B) The registration of the extra VAT number (VIES) is managed by a chartered secretary or by your accountant. It usually takes anywhere between three weeks and two months, and the process takes place at the local Tax Agency.
Because the Italian Tax Agencies are often overflow with their job, it is useful to remind your accountant from time to time that a regular and direct contact with the Tax Agency could be very effective to speed up the process. The accountant could be annoyed to be schooled by a foreigner like you, but in my experience it could be very useful. Be diplomatic – as usual – and you will rarely fail.
Image source: the VAT number search engine of the Italian Tax Agency
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About Stefano Tresca
This work is licensed under a Creative Commons License. You are free to reproduce this publication for solely non commercial use, under the condition that you attribute the work to AttorneyItaly.com. For any other use, please contact us.
Hi Stephano. I sent you a question in the other post (the one about subsidiary vs branch). Do we get the PARTITA IVA for our US LLC when we start the subsidiary or branch? Or do we have to pay these guys as an extra expense?
Yes Richard the Partita IVA (VAT number) is included in any subsidiary and branch (if your consultant does the job properly). You don’t need to pay any extra.
However if you don’t need to issue invoice in Italy, it’s better to avoid subsidiary and branch (they are expensive) and go for a representative office or light branch. I replied to this point in the comments here:
http://attorneyitaly.com/subsidiary-in-italy
Kind regards
SteFano … with F
Hi, i have a question – I sold goods to my italian customer in 2010 – he has a partita IVA, but now i cannot see him on VIES and my czech goverment want me to pay a IVA my myself. As i cas read in 2011 all companies with p.IVA was deleted from VIES and has to register again? Is there any chance to get the proof of registration by p.IVA in italy for this company? Or how should i step forward?
Yes you can. A lawyer would be to expensive. Contact any Italian company that provides certification services, like http://www.companiesinitaly.com (disclaimer: they are my clients) and ask them a “visura”. If your former client is still registered at the Chamber of Commerce, they can prove it trough a certificate with apostille valid in your country. All the best. Stefano
Hi Stefano,
Just found your website and looks really helpful.
I am looking into setting up a business where I would like to bring food products from the UK to sell wholesale in Italy and in return to buy food products in Italy and sell in the UK.
I would be most grateful for any advise for TAX , Vat , regulations
Thanks
Duncan
Hi Duncan, against my interest, I would use a UK Limited company to trade wholesale food between the two countries. Thanks to the European Union, you don’t need to setup a company in Italy. If your business growth, you can always open an Italian branch or an Italian presence. Just my general opinion, always ask to a professional for your specific case.
Dear Stefano,
I am a company residing in Germany with many Italian clients. For me it is the easiest to sell the client something if he has the P.IVA (VIES).
But what I do not know and would like to ask you, is whether the Italian client has to pay the Italian tax directly to the tax office at all? Say he pays for the goods + transport I sell, but does he have to pay tax in Italy or is he completely exempt of that?
Thanks
Iris
Hi Iris. I can’t provide detailed opinion on the website. But I am happy to give some general tips. Trading between two countries of the the European Union (for instance Germany and Italy) is a “cross border” transaction. As a general rule (i) there is NO vat tax on services (for instance if you consult them by phone), on the contrary (ii) a vat tax is usually charged on goods. However there are exception. Check your specific case with an accountant or a tax lawyer as soon as you can. EU countries are extremely concerned on VAT tax fraud, and they are more aggressive than in other field. If your clients go busted, you risk to be forced to pay their debts in another country. All the best.
Hello, Sir My Name is Junaid. I live in Rome.sir i want to get some information.that i have to sale my products door to door in hand byself. So how to make my licence and open my p.Iva?thanku.
Hi Junaid. A lawyer is probably too expensive for what you need. I am used to help companies and manage inheritance. For a door to door activity, try the local Chamber of Commerce. Let me know if it will be successful. Cheers
sir if i Make my own business here so is this possible to get loan around about 20 to 30,000 euro? I don’t have big investmemt but i want to make business here. Thanku im waiting for ur answer. Thanx
Small loans are not my area, but I think that it’s going to be VERY hard to get one. This issue is not limited to Italy. Small business are suffering all around Europe. Ad majora (“all the best” in Latin)
HI Stefano ,
Thx for your great website .
Do you know if it’s always mandatory for a freelancer to be registered to P.Iva to invoice customers or is Codice Fiscale enough on invoices under certain circumstances ?
Thx again .
Best wishes.
Vincent .
Hi Vincent. A freelance without a P.IVA (VAT number) can be paid once a year, for one project, for a limited sum. If you need recurrent work from the freelance, he needs to open his own personal VAT number. The fact that a number of entrepreneur ignore this limit doesn’t make it legal. It’s the I-hope-nobody-catch-me strategy, unfortunately very common in Italy.
Hi Stefano ,
Your site is really helpful to understand the Italian Laws for everyone. kindly tell me how much it cost me to go for the legal process to open my P.IVA (VAT number),as I want to open an Amazon store to sell my goods in other countries.
Best Wishes
Hi. Most of the time, an accountant will open your personal VAT for free or for a symbolic cost, if you appoint him to keep your books. I can’t speak for all the accountants, but know many of them in this position. Check in your city, or online. You can also have a look to my resource page. There is an group of accountant who speak English.
Hi stefano, i want to open a P.iva on a business of buying of secondhand vehicles to africa, what type of P.iva do i need, and can i have also a targe-prove to be transpoting the vehicles to port? Thanks. cliff
Hi Cliff, that’s a consultancy. I am afraid is a bit too much for a comment on a blog. I will pass your email to my friend.
We are UK Based business wants to start concession in Italy, the concession company is requiring an Italian VAT number, How we can get an Italian VAT number do we need to register a new company in Italy or we can open a branch or subsidiary.
Two options:
1) setup an Italian limited company (owned by your company)
2) setup an Italian subsidiary
You can find more information in this website. As a rule of thumb, usually for fashion companies the best solution is a subsidiary. It’s cheaper than an Italian limited company and doesn’t require share capital (on the contrary, an Italian limited company requires Eur 10,000). Eventually you can ask your lawyer.