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Fiscal Representative in Italy

Fiscal Representative in Italy

A fiscal representative in Italy is a local agent who is crucial in handling VAT-related matters for non-European businesses. He/she is responsible for ensuring compliance with VAT regulations, handling financial obligations, and ensuring the accuracy and timeliness of VAT filings. Our team can assist in appointing your fiscal representative and give you more details about company formation in Italy.

Characteristics of the fiscal representative in Italy

It is required that non-EU businesses have a local fiscal representative in Italy for handling VAT-related matters. The representative must have Italian residency. The rules for VAT representation are outlined in Article 17 of Presidential Decree no. 633/72. Businesses can’t have both a fiscal representative in Italy and handle direct VAT registration at the same time.

This requirement applies when a non-EU business wants to register for VAT in Italy and when a non-EU business seeks a VAT refund.

Non-EU businesses are not allowed to go through the regular direct VAT registration process in Italy. Instead, the fiscal representative’s VAT registration number serves as the identifier for the non-EU business for VAT-related purposes in Italy.

The fiscal representative in Italy shares legal responsibility with the non-EU business for ensuring correct VAT reporting and payment. Please note that the representative can require a deposit or bank guarantee due to the risk and liability involved.

For other tax-related issues, you can also seek assistance from our partner accountants in Italy.

Obligations of a fiscal representative in Italy

A fiscal representative has various obligations related to VAT and other tax matters. Here are the key obligations of a fiscal representative in Italy:

  • Handling VAT registrations and deregistrations for the represented business;
  • Preparing and submitting VAT returns and related reports to the Italian tax authorities;
  • Ensuring that VAT payments are made correctly and on time;
  • Issuing invoices on behalf of the client;
  • Maintaining accurate and organized records of all VAT-related transactions;
  • Communicating with tax authorities;
  • Assisting in the VAT refund process.

If you want to know more about VAT or the procedure of company incorporation in Italy, our team is ready to assist you.

When do you need to appoint a fiscal representative in Italy?

You are required to appoint a fiscal representative in Italy when a transaction that occurs within the country is subject to VAT. These situations include:

  • Online sales exceeding 35,000 euros/year;
  • Importing goods to Italy;
  • Selling taxable goods or services to individual customers in Italy.

Failure to register when required can result in fines and interest charges for late VAT returns. It’s advisable to appoint a fiscal representative in time to handle these matters efficiently.

Statistics about taxes in Italy

If you are interested in learning more about the taxation system in the country, here are some statistics regarding tax trends and revenue structures in Italy:

  • In 2021, over 771 billion euros were generated from taxes in Italy;
  • VAT contributed with 120 billion euros to the total tax revenue in 2021;
  • Social security contributions amounted to 240 billion euros from the total tax revenue in 2021, the second-highest amount;
  • The highest taxes that contributed to the total tax revenue in the same year in Italy were the taxes on income, profits, and capital gains (245 billion euros).

We also offer payroll services in Italy for interested individuals and companies.

If you have more questions related to fiscal representation or are looking to open a business in Italy, please contact our team.