Depending on the countries involved, this registration will be either a «direct identification» or a «a fiscal representation»:

✓ In the countries which allow a direct VAT identification, the VAT number belongs to your company and VAT Systems will be registered as your agent with the administration of the country.

✓ In certain countries it is necessary, in order to register for VAT, to appoint a fiscal representative who is locally established and who is in general held jointly and severally liable with the tax payer for the payment of the VAT to the tax authorities. VAT Systems Group, through its subsidiaries and its local network, has the necessary structure and resources to be your fiscal representative wherever required.

Non EU companies without permanent establishment in Italy and which are based in a country that has signed a reciprocity agreement with Italy regarding VAT, that imports in EU goods, are required by local tax authorities to appoint a VAT Representative.
The VAT Representative is liable for the correct management and settlement of VAT compliance and allowed the VAT deduction and refund. VAT Representative should be Italian resident and is joint responsible with the non EU Company of the VAT payment and compliance.

Businesses involved in European cross-border operations need to ensure that they comply with the applicable VAT legislation. This include: correct invoicing, correct periodicals declaration such as: VAT liquidation and payment, Intrastat, etc.

We can act as fiscal representative once a fiscal representative agreement has been signed

You may need to ask for ‘VAT identification’ in order to run your business within the Italian territory.
Here after some examples:

– to sell goods in Italy to end-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;

Any company without a permanent establishment in Italy or VAT Representative is intitled for VAT refunds relating to VAT paied for goods and services purchased in Italy. This is claimed back by submitting a special form to the Italian VAT autorities.

Foreign businesses established in another EU country can reclaim any Italian VAT through the EU 8th Directive VAT system.  The system for the reclaim of Italian VAT for companies from other EU companies was overhauled and simplified in 2010.

EU companies can now submit Italian VAT recovery applications through an online portal operated by their own national tax authority.  This is then processed and submitted to the Italian tax authority which must refund the VAT directly to the company.  The deadline for submissions is 30 September of the year following the year in which the invoice was raised.

Non-EU companies use a different process for VAT recovery in Italy – the 13th VAT Directive.  Non-EU companies must first ensure that there is a tax reciprocity agreement between Italy and their home territory.  If not, then no Italy VAT may be reclaimed.  For example, US companies cannot recover Italian VAT.

If there is reciprocity, the business can complete and submit a special form to the Italian tax authorities.  This should generally be accompanied by supporting original invoices, plus a local tax certificate.  Italian VAT reclaims must be submitted by 30 June of the year following the year in which the invoice was raised.  If this deadline is missed, then the VAT is lost.  Non-EU companies must appoint a fiscal representative for the purposes of recovering VAT.

• New quarterly VAT reporting [Comunicazione dei dati delle fatture emesse e ricevute]

As from 01/01/2017, a company VAT registered in Italy will be obliged to communicate to the Italian VAT authorities the data contained in invoices issued and received on a quarterly basis. The information to be provided includes: data identifying the parties, invoice date and number, taxable base, VAT rate applied, VAT amount and kind of transaction. The data must be filed by electronic way before the last day of the second month following the quarter it refers to.  Failure to present the communication or an incorrect presentation of the data will result in a penalty of between € 25 up to € 25,000.

• New quarterly VAT computation [Comunicazione dei dati delle liquidazioni periodiche IVA]

As from 01/01/2017, a new quarterly communication of VAT calculation will be introduced. The data must be filed by electronically before the last day of the second month following the quarter it refers to. Failure to present the communication or an incorrect presentation of the data will lead to a penalty of between € 500 up to € 2,000.

Any company without a permanent establishment in Italy or VAT Representative is intitled for VAT refunds relating to VAT paied for goods and services purchased in Italy. This is claimed back by submitting a special form to the Italian VAT autorities.