Italy has no standard VAT registration threshold — a Partita IVA is required from your first sale. Sole traders and freelancers with revenue under €85,000 can instead opt for the regime forfettario flat-rate scheme, which exempts them from charging VAT. The standard IVA rate is 22%.
Last updated: June 2026
Italy's VAT (IVA — Imposta sul Valore Aggiunto) does not have a standard registration threshold in the way the UK or Australia do. If you carry out a taxable economic activity in Italy, you generally need a Partita IVA (VAT number) before issuing your first invoice, regardless of how much you expect to earn.
The main exception is the regime forfettario (flat-rate scheme), available to individuals (sole traders and freelancers) with annual revenue up to €85,000. Under this scheme you still need a Partita IVA, but you don't charge IVA on your invoices, don't reclaim IVA on purchases, and pay a flat substitute tax on a notional profit margin instead of standard income tax. It's a popular option for freelancers and small consultancies.
If you exceed €85,000 in a year (or €100,000, which triggers immediate exit mid-year), you move onto the ordinary VAT regime (regime ordinario) from the following year, or immediately if you cross the higher threshold.
If you are a foreign business (EU or non-EU) making taxable supplies in Italy, the regime forfettario does not apply to you — it's only for Italian tax-resident individuals. You'll generally need to register for Italian VAT directly, appoint a fiscal representative (mandatory for non-EU businesses), or use an EU-wide scheme like OSS for digital services to Italian consumers.
The standard rate of 22% applies to most goods and services. Reduced rates of 10% (e.g. hospitality, some food products, renovation work), 5% (some food and social/health services), and 4% (basic necessities, books, some agricultural products) apply to specific categories.
Decide between the regime forfettario (if you're an individual expecting revenue under €85,000) and the regime ordinario (standard VAT). Most freelancers and sole traders starting out choose forfettario for its simpler bookkeeping and lower flat tax rate, but it's worth comparing with a commercialista (accountant) since you can't reclaim input VAT under forfettario.
Submit the relevant registration form to the Agenzia delle Entrate — Modello AA9/12 for individuals and sole traders, or Modello AA7/10 for companies and other entities. This can be filed online via the Entratel/Fisconline portals, in person at a local Agenzia delle Entrate office, or through a commercialista.
Once processed, you'll be issued an 11-digit Partita IVA. This is your VAT number for both domestic invoicing and, once validated, for cross-border EU transactions under the "IT" prefix.
Italy requires almost all invoices to be issued electronically through the Sistema di Interscambio (SdI), the government's e-invoicing exchange platform. You'll need e-invoicing software or a commercialista's platform that can generate and transmit XML invoices through SdI — paper or PDF invoices are not compliant for most domestic transactions.
Filing liquidazioni IVA: Standard-regime taxpayers calculate and pay IVA periodically — monthly by default, due by the 16th of the following month. Smaller taxpayers below certain turnover limits can opt for quarterly filing, due by the 16th of the second month after the quarter ends, with a 1% interest surcharge. An annual VAT return (Dichiarazione IVA) reconciling the year is due by 30 April of the following year. Forfettario taxpayers don't file periodic IVA returns since they don't charge VAT, but do file an annual income tax return under the flat-rate scheme.
Invoicing requirements: Electronic invoices sent via SdI must include your Partita IVA and Codice Fiscale, the customer's details (Codice Fiscale or Partita IVA, and a "Codice Destinatario" or PEC address for delivery), a sequential invoice number, description of goods/services, taxable amount, IVA rate and amount (or the applicable exemption note for forfettario invoices).
Late filing and payment penalties: Late IVA payments incur an administrative penalty typically starting at 25% of the unpaid tax (reducible under the "ravvedimento operoso" voluntary correction scheme if you pay promptly after the deadline, on a sliding scale based on how late you are), plus statutory interest. Missing the annual return entirely carries steeper penalties. Given the complexity, most freelancers and small businesses in Italy use a commercialista to manage filings.
It's Italy's flat-rate tax scheme for individuals (freelancers, sole traders) with revenue up to €85,000. You still get a Partita IVA, but you don't charge IVA on invoices, don't reclaim IVA on purchases, and pay a single substitute tax (often 15%, or 5% for the first five years for qualifying new activities) on a notional profit margin set by your business activity code (ATECO), rather than filing standard income tax and IVA returns.
If you supply services to Italian VAT-registered businesses (B2B), the reverse charge mechanism usually applies and your Italian client accounts for the IVA — you typically don't need to register in Italy. If you supply digital services to Italian consumers (B2C), you can usually use the EU OSS (One Stop Shop) scheme registered in your own EU country instead of registering directly in Italy. Non-EU businesses making taxable supplies directly in Italy generally need a Partita IVA and, in many cases, a fiscal representative.
SdI is the Italian government's mandatory electronic invoicing exchange system. Nearly all invoices between Italian businesses, and to consumers, must be issued in a structured XML format and transmitted through SdI rather than as PDF or paper invoices. Most invoicing and accounting software used in Italy integrates directly with SdI.
IVA (Imposta sul Valore Aggiunto) is the tax itself — Italy's VAT. Partita IVA is the 11-digit VAT registration number issued to a business or individual once they register. "Aprire la Partita IVA" (opening a Partita IVA) is the common way Italians refer to registering as self-employed or starting a VAT-registered business.
Restaurant meals and hotel accommodation are generally taxed at the reduced 10% rate rather than the 22% standard rate. Takeaway food can fall under different rates depending on preparation and packaging — if in doubt, a commercialista can confirm the correct ATECO-linked rate for your specific goods or services.
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