VAT Number in Italy: Everything You Need to Know

March 13, 2025 Admin

Introduction

If you’re planning to do business in Italy, one of the most crucial things you’ll need is a VAT number (Partita IVA). Whether you’re a freelancer, entrepreneur, or foreign business expanding to Italy, understanding how the Italian VAT system works is essential.

In this guide, we’ll break down what a VAT number is, who needs it, how to apply for one, and why it’s important – all in plain and simple English!

What is a VAT Number in Italy?

A VAT number (Partita IVA) is a unique identification number assigned to businesses and professionals who provide goods or services in Italy. It allows companies to collect Value Added Tax (VAT) from their customers and pay it to the Italian government.

The VAT number in Italy consists of 11 digits, structured as follows:

First digit: Always a 0.
Next 7 digits: A unique identifier for the taxpayer.
Last 3 digits: Represent the tax office code.

For example, a VAT number in Italy may look like this: IT01234567890.

Who Needs a VAT Number in Italy?

Not everyone needs a VAT number, but if you fall into any of these categories, you must have one:

✅ Freelancers (self-employed professionals)
✅ Businesses selling goods or services in Italy
✅ Foreign businesses operating in Italy
✅ E-commerce and online sellers selling to Italian customers

Even if you’re a non-EU business but planning to sell in Italy, you may need to register for VAT, depending on your sales volume.

How to Get a VAT Number in Italy

Applying for a VAT number in Italy is not too complicated (but it does involve some paperwork!). Here’s a step-by-step guide:

Step 1: Choose the Right VAT Category

Before applying, you must determine the type of VAT registration you need:

Ordinary VAT regime – For businesses and professionals with significant annual revenue.
Flat-rate VAT regime – A simplified option for freelancers and small businesses with earnings below €85,000 per year.

Step 2: Submit an Application to the Italian Revenue Agency (Agenzia delle Entrate)

To get your VAT number, you need to fill out a form (called Form AA9/12 for individuals or Form AA7/10 for businesses). You can:

Apply online via the Italian Revenue Agency’s website.
Submit your application in person at the nearest Agenzia delle Entrate office.

Step 3: Provide the Necessary Documents

You’ll need to submit:

A valid ID or passport
Proof of Italian residence or business address (if applicable)
Business registration documents (for companies)
A detailed business plan (sometimes required for non-EU businesses)

Step 4: Wait for Approval

Once your application is submitted, your VAT number is usually issued within a few days to a couple of weeks.

How Much VAT Do You Pay in Italy?

Italy has different VAT rates depending on the type of goods or services:

📌 Standard VAT Rate: 22% (applies to most goods and services)
📌 Reduced VAT Rate: 10% (some food, hotel stays, and certain transport services)
📌 Super Reduced VAT Rate: 5% and 4% (basic essentials like books and medicines)
📌 Exempt VAT: Some activities (like certain medical services and education) are VAT-free.

How to Verify a VAT Number in Italy

If you want to check if a VAT number is valid, you can do so online using the VIES (VAT Information Exchange System). Just go to the European Commission’s VIES website, enter the VAT number, and it will tell you whether it is active.

What Happens If You Don’t Register for VAT?

If you’re required to have a VAT number but fail to register, you could face: 🚨 Fines and penalties
🚨 Back taxes
🚨 Legal trouble with Italian tax authorities

To avoid issues, make sure you register on time and file your VAT returns properly.

Conclusion

A vat number italy in Italy is a must-have for freelancers, businesses, and foreign companies operating in the country. Although the process involves a bit of paperwork, getting your VAT number ensures that you’re compliant with Italian tax laws and can legally operate in the country.

Whether you’re just starting out or expanding your business, understanding how VAT works will save you from financial and legal headaches down the road!

FAQs About VAT Number in Italy

1. How long does it take to get a VAT number in Italy?

It usually takes a few days to a couple of weeks to receive your VAT number after submitting your application.

2. Can a foreign business get an Italian VAT number?

Yes! If you’re a non-Italian business selling goods or services in Italy, you may need to register for VAT.

3. Is there a fee to get a VAT number?

No, registering for a VAT number is free, but you may need to pay for assistance from a tax consultant.

4. Can I operate in Italy without a VAT number?

If you’re a business or freelancer providing taxable services, no – you need a VAT number to operate legally.

5. How do I cancel my VAT number if I stop working in Italy?

You must notify the Italian Revenue Agency and formally deregister to avoid ongoing tax obligations.