The operational changes entered into force in 2025 make it even more important for foreign groups and international operators to correctly plan their VAT registration in Italy through a tax representative, particularly in those cases in which a registration with the VIES database is required.
Non-resident entities without a permanent establishment in Italy may need to register for VAT purposes in the Italian territory when they intend to carry out transactions relevant for VAT purposes in Italy.
In such cases, one of the options provided for under the Italian regulation is the appointment of a tax representative pursuant to art. 17, para. 3 of Presidential Decree no. 633/1972. The tax representative acts based on a proxy which allows the foreign entity to comply with VAT fulfilments and to exercise the relevant rights in Italy.
The appointment of a tax representative does not alter the non-resident status of the foreign entity and does not impact, in itself, on the VAT territoriality of the transactions carried out. However, it allows the foreign entity to obtain an Italian VAT number and to correctly manage the fulfilments related to the transactions relevant for VAT purposes in Italy.
The matter takes on particular importance in the light of the regulatory and operational changes introduced regarding tax representation. In particular, art. 4 of Legislative Decree no. 13/2024 provides for specific integrity requirements for the tax representative and the issuance of an appropriate guarantee in certain cases; the relevant implementing provisions have then been defined by Ministerial Decree dated 9 December 2024 and by the Revenue Office directives issued in 2025.
One of the main operational changes concerns the registration with the VIES database. For subjects not resident in the European Union, nor in a State within the European Economic Area, and identified in Italy through a tax representative, inclusion in the VIES database is subject to the provision of an appropriate guarantee.
The guarantee can be provided in the form of a deposit of government bonds or government-guaranteed bonds, or through a surety bond or bank guarantee. The minimum limit of liability is equal to 50,000 Euro and the minimum duration is 36 months from the date of submission to the relevant Revenue Office provincial directorate.
As for timing, the guarantee must be submitted prior to the application for inclusion in the VIES database for those entities already holding an Italian VAT number, or at the same time as the declaration of commencement of business for foreign entities not yet registered for VAT purposes in Italy.
Moreover, correctly drawing up the tax representation mandate, which must comply with specific formal requirements, as well as filling in the AA7/10 form for the application for the obtainment of the Italian VAT number for the non-resident entity, remain crucial.
The procedure therefore requires a careful preliminary assessment of the transactions that the foreign entity intends to carry out in Italy, of the need to operate within the EU and of the documentary requirement set forth by the tax authorities.
Incorrect planning may lead to delays in the commencement of operations in Italy, issues with the VIES database registration and difficulties in managing subsequent VAT compliance, including invoicing, periodic VAT settlements and the annual VAT return.
For this reason, in the light of the operational changes introduced in 2025, foreign groups and international operators intending to carry out transactions relevant for VAT purposes in Italy should promptly assess the need to register for VAT purposes in Italy and to correctly structure the procedure for appointing a tax representative.
In this context, specialist assistance can support foreign entities both during the preliminary analysis of VAT flows and in the subsequent management of the registration procedure, possible registration with the VIES database and the fulfilments related to operating in Italy.