Italy VAT (IVA) Guide for 2026: Rates, Registration & Compliance
Italy's standard VAT (IVA) is 22%. This guide explains registration, mandatory e-invoicing via SdI, OSS for cross-border sales, and filing requirements.
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Key Takeaways
Italy's standard VAT (IVA) rate is 22%, with reduced rates of 10% and 5% and a super-reduced 4% on basic necessities; Italy also requires electronic invoicing (SdI) for most transactions. A non-established business must register for an Italian VAT number as soon as it makes taxable supplies, with no threshold; for EU-wide B2C distance sales, VAT is due once sales exceed the EU-wide EUR 10,000 threshold. Electronically supplied services, including SaaS, are taxable at 22%; financial and medical services are exempt.
Taxability Snapshot
SaaS
Taxable
Digital Goods
Taxable
Sales Tax Rates
Italy's standard VAT rate (IVA) is 22%, with reduced rates of 10% and 5% and a super-reduced 4% on basic necessities. VAT is administered by the Agenzia delle Entrate, and Italy requires electronic invoicing (SdI) for most transactions.
Rate | Applies to |
|---|---|
Standard 22% | Most goods and services |
Reduced 10% | Some food, utilities, tourism |
Reduced 5% | Certain social and food items |
Super-reduced 4% | Basic necessities, books |
Italy VAT Calculator
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Italy · IVARates as of September 2026. Source: Agenzia delle Entrate: VAT rates (opens in a new tab).
Italy · Standard rate
22%
IVA rate
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This is an estimate. Whether a sale is taxable, and at which rate, depends on what you sell, who you sell to and where it's supplied. If you intend to rely on these rates, please use the Kintsugi platform.
Registration & nexus threshold
Italy uses VAT registration rules rather than US-style economic nexus. A non-established business must register for an Italian VAT number as soon as it makes taxable supplies in Italy, with no threshold [1]. For cross-border B2C sales within the EU, VAT is due in the customer's country once total EU distance sales exceed the EU-wide EUR 10,000 threshold, reportable through the One Stop Shop [3]. Registration steps are in the How to Register section.
Filing frequency & deadlines
Service providers with revenue below €500,000 and other businesses below €800,000 may file VAT quarterly; larger businesses file monthly. An annual VAT return is also required.
Exemptions
Exports and intra-EU B2B supplies are zero-rated, and financial and medical services are exempt. Electronically supplied services, including SaaS, are taxable at 22%; non-resident B2C sellers usually account via OSS.
Penalties
Late or omitted payment carries a penalty of around 25% of the unpaid tax, and failure to file an annual return can reach 120% of the tax due, plus interest.
Sources
[1] Agenzia delle Entrate — VAT in Italy (registration, filing, SdI e-invoicing)
[2] European Commission — VAT rates (Italy 22% standard, 10% and 4% reduced)
[3] European Commission — One Stop Shop (EU-wide EUR 10,000 threshold)
Verified July 2026 against Agenzia delle Entrate and European Commission guidance.
Frequently asked questions
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