What is Italian VAT Registration? Italian VAT Registration Review

1. How to determine whether you need to register for an Italian VAT number?

1. A company legally established in Italy

2. Have inventory stored in Italy and ship to local consumers from Italy

3. Selling goods from warehouses in other EU countries to Italy, exceeding the distance selling threshold of 35,000 euros

As long as one of the above points is met, you must fulfill the Italian VAT registration and payment obligations.

2. How long does it usually take to register an Italian tax number?

Generally it is 1-3 months, and the specific time limit depends on the completeness of the information and whether the new and old accounts need to pay additional taxes.

3. How long is the Italian VAT declaration cycle?

1. If the annual sales volume exceeds 700,000 Euros, monthly declaration is required.

2. If the period does not exceed the limit, the customer can choose monthly or quarterly reporting.

IV. Materials Required for Italian VAT Registration

1. Business license

2. Legal person ID card

3. Legal person's identity certificate (passport)

4. Authorization

5. Signing a tax agency agreement

5. Materials required for Italian VAT declaration

1. Sales report

2. Customs clearance documents

3. If it is a zero declaration, a zero declaration letter is required

VI. Italian VAT calculation case

For example:

For example, if the cost of a certain mobile phone case you sell is 100 yuan, and Amazon sells it for 200 yuan, and you purchase 100 pieces and send them to Italy, the total first-leg shipping cost is 800 yuan.

The total cost of the goods (declared value) is 10,000 yuan. During this quarter, you sold 90 units of this product.

How much VAT do you need to pay for your standard declaration (Italian tax rate: 22%) this quarter?

The calculation formula is as follows:

Tariff = declared value * product tax rate = 10,000 * 7% (calculated based on 7% mobile phone case) = 700 yuan

Import VAT = (declared value + first-leg freight + tariff) * tax rate = (10,000 + 800 + 700) * 22% = 2,530 yuan

Sales VAT = {final sales / (1 + tax rate)} * tax rate = { (90 pieces * 200 yuan) / (1 + 22% )} * 22% = 3246 yuan

※Since import VAT can be refunded, the VAT you actually need to pay in the current quarter is:

Actual tax paid = Sales VAT – Import VAT = 3246 yuan – 2530 yuan = 716 yuan

VII. FAQs about Italian VAT registration

Q1: What are the consequences of registering for VAT but not paying taxes?

It is very important to declare your tax truthfully, promptly and accurately. If you intentionally delay, make an error or make a false declaration, you may be subject to penalties from the UK tax office HMRC, including goods seizure, reporting to eBay or Amazon resulting in account freezing, and fines.

Q2: Validity of VAT number

Each VAT number is unique. If you need to check the validity of a VAT number, you can visit the following link and select the corresponding country code and VAT number to query: ec.europa.eu/taxation_customs/vies

Q3: Can I use someone else’s VAT number to upload to Amazon, or can I bind one VAT number to multiple Amazon accounts?

No! First of all, each VAT number is unique, and sellers should apply for their own real and valid VAT number. If a VAT number is bound to multiple accounts, it will cause account association. Amazon will think that these accounts belong to the same operator or the same company, and there will be joint risks for multiple accounts. You must not do this.

Q4: How can sellers determine whether they should add the Italian VAT number and company information to the sales platform?

If you meet any of the following conditions, you must provide your Italian VAT number and company information to your Amazon/eBay account:

First point: We used an Italian overseas warehouse, and some items were listed as being located in Italy.

Second point: using overseas warehouses in other EU countries (excluding Germany, including the UK), such as Czech Republic and Poland, to sell goods to Italian consumers, and annual sales exceed 100,000 euros. Note: This limit does not only count Amazon's sales, but should include sales from other sales platforms such as eBay, Amazon, Wish, and other sales channels that use the same Italian VAT number.

References