ITALIAN VAT DIRECT IDENTIFICATION 

Direct identification for VAT registration in Italy

The direct identification tool was introduced in Italy with Legislative Decree no. 191/02 in implementation of the EU Directive no. 2000/65 / EC.
Subsequently, this directive was recast in articles 204 and following of the EU Directive n. 2006/112 / EC.

In detail, therefore, it allows to open a VAT position in Italy without the need to appoint a fiscal representative;

Not residents entities that exercise, Business activity and / or Art or profession activity in an EU state or in a third country with which there are legal instruments of reciprocity and assistance in the field of indirect taxation (see Resolution no. 220 / E / 2003 of the Revenue Agency), can apply for this route. Actually only EU and UK companie can use this route for obtaining a VAT position in Italy

Direct identification mode for VAT purposes must be applied, in the absence of a permanent establishment, and as an alternative to the appointment of a Fiscal representative in Italy.
This tool is activated in the case of the sale of goods or provision of services that are territorially relevant in Italy, carried out by non-resident subjects towards:

– Private consumers;
– Holding goods in Italian warehouses;
– Importing goods into an EU country, which can include moving goods across national borders within the EU
– Holding a live conference, exhibition or training if there is paid entrance
– Supply and install of equipment
– Non-resident subjects even if in possession of a VAT number.

The non resident company must submit VAT forms to the Agenzia delle Entrate Ufficio operativo di Pescara and keep a proper vat accounting based on the Italian accounting rules.
This is only correct way for doing business in Italy.

Our Italian Vat Direct Identification Services
– obtaining Italian VAT number;
– 360 degree Italy VAT compliance and VAT registration service;
– drawing-up and submitting Intrastat and others statements, if required;
– calculating VAT;
-filing Comunicazione Liquidazioni Periodiche IVA, the Italian quarterly VAT return;
– filling annual VAT returns;
– dealing with F24 tax payment model, the Italian model for Tax and VAT payments;
– dealing with VAT refunds.

FAQ

Why Vat Registration in Italy?
You may need to apply for ‘VAT identification’ in order to run your business within the Italian territory.
Here after some examples:
– to sell goods in Italy to private consumers;
– to deduct VAT paid on Italian purchases of goods and services related to sales made in Italy, for
example, sales of goods which have been assembled or installed in Italy;
– to undertake distance sales in Italy that exceed certain limitations;
– to organize conference and fairs in Italy;
– to transfer goods from your country to Italy for example to deposit them in a warehouse owned by a third
party;

Who can apply to Italian VAT registration using Direct identification mode?
Only EU companies and UK companies can apply to direct identification for VAT registration in Italy. Companies located elsewhere must apply after appointing a fiscal representative.

What are the VAT treatment for BtoB transactions?
For transactions carried out in relation to other businessess, therefore, the so-called “B2B operations” the non resident company has to issue an invoice, without the indication of the Italian VAT number obtained with the identification. In this case, the Italian client is required self-invoice, through the application of the “reverse charge” mechanism, with the mechanism:

Of accounting integration. In the case of a lending company resident in an EU country;
Of the self-invoice. In the case of a lender company resident in a non-EU country.