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 |
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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