Legal Overview

As of April 2025, non-EU companies not established in Italy are subject to a new legal obligation when registering for VAT (Partita IVA): the requirement to provide a financial guarantee. If you are registering for VAT in Italy, a guarantee is now required as part of this process. These new VAT rules in Italy for non-EU businesses mark a significant change in the registration requirements.

This measure, introduced by the Italian Revenue Agency (Agenzia delle Entrate) under Article 35(7-quater) of Presidential Decree 633/1972, aims to increase compliance and prevent VAT fraud in cross-border operations.

Who Must Comply

The guarantee applies to:

Non-EU and non-EEA companies without a permanent establishment in Italy;
Entities appointing a fiscal representative in Italy (as required under Article 17(3) of DPR 633/1972);
Companies applying for VAT registration, regardless of whether they also request inclusion in the VIES (VAT Information Exchange System).

In other words, VAT registration itself—not just VIES inclusion—is now conditional upon a financial guarantee.

VAT Registration Process for Non-EU Companies

New VAT Rules in Italy for Non-EU Businesses? We assist clients in completing each step of the registration process:

Appointment of a Fiscal Representative
We act directly or coordinate trusted tax partners to fulfil this legally required role.
Preparation of Documentation
Includes corporate documents, Powers of Attorney, translated and legalised where necessary.
Submission of the VAT Registration Request
Filed with the Italian Revenue Agency’s competent office based on the fiscal representative’s address.
Provision of Financial Guarantee
Required at the time of registration. We advise on the most appropriate form and assist with execution.

Guarantee Requirements in Detail

The financial guarantee must:

Have a minimum value of €50,000;
Be valid for no less than 36 months;
Be submitted in advance or along with the VAT application.

Acceptable Guarantee Instruments:

Bank guarantee from a financial institution authorised in Italy;
Surety bond (fideiussione assicurativa) issued under Italian law;
Deposit of government-backed securities.

We support our clients in negotiating and issuing such instruments with compliant Italian or international banks and insurers.

Implications of Non-Compliance

Failure to provide the guarantee:

Prevents registration for VAT;
Blocks access to VIES (if requested);
Triggers removal from the VIES database for companies already listed;
Exposes your business to penalties for improper VAT treatment in Italy.

This significantly raises the stakes for cross-border operators. Early planning and proper legal assistance are key.

Registering for VAT in Italy? Why Work with Us

Our Italy VAT consultants for foreign companies are focused in helping international clients:

Register for VAT and VIES in Italy
Fulfill all requirements for non-resident companies, including drafting and submission of guarantees
Act as or coordinate with fiscal representatives
Maintain full tax compliance under Italian and EU regulations

Our legal team has extensive experience with cross-border corporate setups, intra-EU trade compliance, and non-resident tax strategies.

We understand the challenges non-EU businesses face and offer a streamlined approach tailored to your business structure, industry, and compliance risk.

Schedule Your Consultation Today on New VAT Rules in Italy for Non-EU Businesses

If you are a non-EU company planning to do business in Italy, we invite you to schedule an initial consultation with our legal team. We will evaluate your case, explain your obligations, and guide you step-by-step to ensure a smooth, compliant VAT registration.

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