Italian VAT Return

When do you have to file an Italian VAT return?

After applying for an Italian VAT number, you are obliged to file a periodic declaration for Italian sales tax. You do this monthly with a turnover above € 700,000 per year and per quarter with an annual turnover below € 700,000. In addition, you must also submit an annual VAT return.

What do you need to file an Italian VAT return?

If you have to file an Italian VAT return, you need an Italian VAT number. Don’t own this one yet? Then we are happy to help you with the application for your Italian VAT number. The VAT return and payments are submitted through the Italian tax authorities.

One Stop Shop VAT Registration in Italy

Since July 1, 2021, the threshold amounts for intra-EU distance sales per EU country have been abolished. In its place, a single threshold of €10,000,- has been established (applicable to all intra-EU distance sales of goods, along with the sale of digital services to consumers in the EU).

As soon as you exceed the threshold of €10,000, you charge the VAT rate of the EU country where your customer is located. Then you qualify for the One Stop Shop. You then make a VAT declaration to the Tax Authorities once a quarter. They then ensure that all VAT is distributed over the correct countries.

You can arrange your foreign VAT declaration in 2 ways:

1. You make a local VAT declaration per EU country in which you have sold.
2. You submit a One Stop Shop declaration to the Tax Authorities once a quarter. To do this, register your business for the ‘Union scheme‘ within the new system.