Italy

Value-added tax (VAT)

Italian VAT (Imposta sul Valore Aggiunto) applies to the supply of goods and services carried out in Italy by entrepreneurs, professionals, or artists and on importations carried out by anyone. Intra-Community acquisitions are also subject to VAT under certain situations.

The Italian standard VAT rate is 22%. Reduced rates are provided for specifically listed supplies of goods and services, such as:

• 4% for listed food, drinks, and agricultural products, and e-books/e-periodicals that meet certain requirements.
• 5% for certain health services, for the sale of food herbs, for certain transport services on seas, lakes, and rivers, and for district heating services.
• 10% for electric power supplies for listed uses, listed drugs, pellets, and for specific products regarding childhood (e.g. milk powder).

Intra-Community supplies and exports are exempt from VAT under certain conditions.

Under certain conditions, transactions with taxable persons who usually carry out export of goods are exempt from VAT with right to deduct.

Specific supplies of goods and services expressly listed in the law are exempt from VAT (e.g. hospital and medical care, education, insurance services, specific financial services, supply/leasing of certain immovable property, cosmetic surgery healthcare services only on condition that the therapeutic purposes are demonstrated by a specific medical certificate).

Input VAT on purchases of goods and services related to business activity generally is allowed for recovery. Special limitations apply in relation to specific items (e.g. cars, entertainment expenses) and to companies carrying out both taxable transactions and transactions exempt from VAT with no right to deduct.

The filing deadline for the annual VAT return is 30 April of the following year.

Electronic invoicing obligations

Starting from 1 January 2019, a mandatory electronic invoicing obligation is in place for the supplies of goods or services carried out between persons that are resident or established in Italy. This obligation does not apply for non-established taxable persons, even if registered in Italy through direct VAT identification or a fiscal representative.

Reverse-charge mechanism

According to the reverse-charge mechanism, the obligations related to supply of goods and provision of services carried out in Italy by non-resident taxable persons towards taxable persons established in Italy are fulfilled by the latter. The recipient of goods and/or services has to integrate the invoice received by the EU supplier or has to issue a self-invoice in case of a non-EU supplier and record it in the VAT sales register and VAT purchase register within a defined timeline.

Registration tax

Specific deeds and contracts must be filed with the local registration tax office either upon signature or if specific circumstances occur, and the relevant tax must be paid.

Depending on the nature of the contract and on the assets that are the object of the contract, as well as on the form of the contract, registration tax is levied as a fixed amount or as a percentage of the value of the goods and/or rights that are the object of the contract. As a general rule, no proportional registration tax is due in the case of transactions subject to VAT.

VAT and registration tax on lease of immovable properties

Leases of residential and commercial buildings, or portions thereof, generally are exempt from VAT with no right to deduction and subject to the registration tax at a 2% or 1% rate.

Different VAT rates, VAT treatment, and registration tax treatment apply depending on the type of buildings the lease refers to (e.g. residential, commercial buildings) and the supplier (e.g. individual, construction companies, taxable persons other than construction companies).

Specific rules apply in case of financial leases of residential and commercial buildings from a registration tax perspective.

Customs duties

At the moment of the importation of goods into the EU territory, customs duties are applied. The amount of customs duties to pay depends on the value and nature of the goods imported. In particular, for each kind of good, the Common Customs Tariff provides a tax rate to be applied to the value or number of the goods imported.

The correct classification of the goods is one of the most important issues to consider when an economic operator introduces goods in Italy. A wrong classification can give rise to the application of higher customs duties, and the operator could face a tax burden not due, or to the application of lower customs duties, and this situation could lead to a tax assessment by the Italian Customs Authority.

The value of the goods is represented by the transaction value, hence, the price actually paid or payable for the goods when sold for exportation to the customs territory of the EU, provided that:

• there are no restrictions as to the disposal or use of the goods by the buyer
• the sale or price is not subject to some condition or consideration for which a value cannot be determined with respect to the goods being valued
• part of the profits of any subsequent resale, disposal, or use of the goods by the buyer will not be accrued, directly or indirectly, to the seller, and
• the buyer and seller are not related, or, where the buyer and seller are related, that the transaction value is acceptable for customs purposes.

In determining whether the transaction value is acceptable, the fact that the buyer and the seller are related is not, in itself, sufficient for considering the transaction value as not acceptable. Where necessary, the circumstances surrounding the sale are examined, and the transaction value is accepted if the relationship did not influence the price.

The price actually paid or payable is the total transaction amount paid for the imported goods and includes all payments made as a condition of sale of the imported goods by the buyer to the seller or by the buyer to a third party to satisfy an obligation of the seller.

In determining the customs value, the following items shall be added to the price, to the extent that they are incurred by the buyer and are not included in the price (list not exhaustive):

• Commissions and brokerage.
• Royalties and licence fees related to the goods under assessment.
• The cost of transport and insurance of the imported goods.

At the same time, provided that they are shown separately from the price actually paid or payable, the following items shall not be included in the customs value (list not exhaustive):

• Charges for the transport of goods after their arrival at the place of introduction into the customs territory of the European Union.
• Charges for construction, erection, assembly, maintenance, or technical assistance, undertaken after importation of imported goods such as industrial plant, machinery, or equipment.
• Buying commissions.

A reduced or zero rate of duty at importation can be applied when the goods imported have a preferential origin. The preferential origin depends on the existence of commercial agreements between the European Union and other non-EU states or by facilities provided by the European Union to non-EU states unilaterally.

The application of a reduced or zero rate of duty can even depend on the existence of preferential tariff treatment or on the existence of a particular exemption provided by law for some kind of goods.

Any person may appoint a representative in one's dealings with the Customs Authority to perform the activities and formalities laid down by customs rules. Such representation may be direct, in which case the representative shall act in the name and on behalf of another person, or indirect, in which case the representatives shall act in one's own name but on behalf of another person.

For direct representation, a forwarding agent, holder of a particular licence, must be appointed.

The representative must be established within the European Union.

Re-engineering of the electronic import clearance system

As of 30 November 2022, the Italian Customs Authority, as part of the re-engineering project of the electronic import clearance system, announced the definitive dismissal of the IM message in favour of the new telematic tracks for the transmission of the customs declarations.

The implementation of the above-mentioned telematic tracks means that the customs declaration is originated by the exchange of data through electronic messages, thus removing the necessity and also the possibility of getting the Single Administrative Document (i.e. SAD).

In order to register the transaction in the VAT ledgers and deduct the relevant import VAT, operators must therefore download a new document from their reserved area on the Italian Customs Authority website called ’prospetto di riepilogo ai fini contabili‘. This document is in PDF format.

As clarified by the Italian Tax Authority with the Ruling no. 417/2022, documents other than the ’prospetto di riepilogo ai fini contabili‘(e.g. ‘courtesy documents‘ issued by forwarding agents or customs brokers) cannot be used in this respect.

Re-engineering of the electronic export clearance system

As of 2 December 2024, the Customs Authority, as part of the re-engineering project for the export clearance IT system, has implemented new telematic formats for the transmission of the export customs declarations.

The Customs Authority put at disposal of the operators the so-called DAE (i.e. Export Accompanying Document) in PDF format and the exit message in .XML format (iVisto). The latter file is the electronic message (‘exit result‘) transmitted by the exit customs office to the export customs office and recorded in the IT system of the Customs Authority, certifying the departure of the goods from the European Union and supporting the VAT exemption regime of the export sales.

Excise duties

The following goods are subject to excise duties:

• Energetic products (e.g. petrol, gas oil, natural gas, coal).
• Alcohol and alcoholic drinks (e.g. wine, beer, ethylic alcohol).
• Processed tobaccos (e.g. cigars, cigarettes, tobacco).
• Electric power.

The subjection of a product to excise duties has to be verified on the basis of its customs combined nomenclature code.

The tax liability, depending on the products, arises:

• at the moment of importation or production (and the excise duties must be paid at the moment in which they are released for consumption in Italy)
• when the excisable goods are used for heating or as fuel, and
• when the excisable goods are released for consumption or used for own use.

As a general rule (with exception of natural gas and coal, coke, and lignite), with reference to excise goods released for consumption during a month, the payment of the relative excise duties has to be made by the 16th day of the following month.

With reference to excise goods imported, customs rules are applied as far as the procedure and terms of payment are concerned.

The production, processing, and holding of 'excise goods', except from natural gas, coal, coke, lignite, and electric power, are subject to a suspensive regime performed through a fiscal warehouse.

In order to manage a fiscal warehouse, it is necessary to acquire a licence issued by the Italian Customs Authority, and there are specific obligations for the owner of a fiscal warehouse (e.g. provide for a particular guarantee, keep a particular accounting system for the goods stored, be subject to controls performed by Italian Customs Authority, where requested).

The Italian legislation provides for many exemptions with regards to the use of 'excise goods'.

Furthermore, under certain circumstances, a tax refund is granted to the operator who released for consumption if, afterwards, the products are not consumed in Italy.

Plastic tax and sugar tax

The 2020 Budget Law introduced a new tax on the utilisation, event partial, of single-use plastic items or ’MACSI‘ (‘plastic tax‘), which have or are intended to have the function of containing, protecting, handling, or delivering goods or food products (e.g. plastic bottles, bags, and trays for food), even in sheet, film, or strip shape.

The tax does not apply to compostable MACSIs, as well as to medical devices and plastic containers used to contain and protect medicinal drugs.

The taxable amount of the new tax is fixed at EUR 0.45 per kilogram of plastic material contained in the MACSI.

The 2020 Budget Law also introduced a new tax on sweetened beverages (‘sugar tax’). Notably, the tax applies to finished products and those prepared to be used as such after dilution, falling within the headings of NC 2009 (fruit juices, vegetables, and legumes) and 2202 (water with added sugar or other sweeteners or flavouring, and other non-alcoholic beverages) of the EU combined nomenclature, put up for sale, intended for human food consumption, obtained by adding sweeteners, and having an alcoholic strength of less than or equal to 1.2% by volume.

The taxable amount of the new tax is fixed, respectively, at EUR 10 per hectolitre for finished products and at EUR 0.25 per kilogram for products intended to be used as such after dilution.

An exemption applies to sweetened beverages if the overall content of sweeteners is less than or equal to, respectively, 25 grams per litre for finished products, or 125 grams per kilogram for products intended to be used as such after dilution. 

The Law no. 67, dated 23 May 2024, provided for the deferral of the plastic tax to 1 July 2026. 

The Italian government, in the Council of Ministers meeting of 20 June 2025, decided to further postpone the entry into force of the sugar tax from 1 July 2025 to 1 January 2026.

Carbon Border Adjustment Mechanism (CBAM)

Regulation EU 2023/956 of the European Parliament and of the Council of 10 May 2023 introduced the so-called ’Carbon Border Adjustment Mechanism’ (CBAM).

Starting 1 October 2023, the CBAM applies to import of the following product groups to the European Union from non-EU countries:

• Aluminium
• Iron and steel
• Fertilisers
• Hydrogen
• Electricity
• Cement

 The CBAM does not apply to goods originating in the following countries:

• Iceland
• Liechtenstein
• Norway
• Switzerland

In the transitional period starting 1 October 2023, there are requirements for quarterly reporting of embedded greenhouse gas emissions of products imported to the European Union, with the first reporting to be submitted by 31 January 2024.

In the CBAM definitive period starting 1 January 2026, only the ’authorised CBAM declarants‘ would be allowed to import the CBAM products to the European Union.

In the definitive period, there would be more obligations in relation to CBAM, including purchasing certificates, verification of greenhouse gas emissions data, and submission of annual declaration.

The price of CBAM certificates would be linked to the carbon prices at the EU ETS.

Stamp duty taxes

Stamp duty taxes (Imposta di Bollo) apply on a certain list of deeds or documents provided for by the relevant law provision (e.g. checks, bills of exchange, statements of account, certificates, books of account, deeds of transfer of quotas, and, in some specific cases identified by the Law, invoices).

According to the kind of deed, stamp duty tax is due upon the deeds’ origin or in case of use (e.g. if the deed is filed to the Italian Registration Office). Moreover, it can be a fixed amount or as an amount proportional to the value of the deed or document.

Stamp duty tax can be paid:

• ordinarily, through a physical stamp attached on the document, or
• virtually, through electronic means (in this case, a specific authorisation from the Italian tax authorities and a specific process procedure are needed).

Even considered the mandatory electronic invoicing obligation for the supplies of goods or services carried out between persons that are resident or established in Italy, there are specific ways of payments of stamp duty tax.

Stamp duty tax is usually alternative to VAT; however, in case of considerations partially subject to VAT and partially not subject to VAT, the invoice is subject to stamp duty tax if the total amount of the considerations not subject to VAT exceeds EUR 77.47. Moreover, some transactions are stamp duty tax exempted (e.g. inter-Community supply of goods). For transactions that are exempted from VAT (with restriction on VAT credit) and for transactions out of scope of VAT, exceeding EUR 77.47, an amount of EUR 2 is due as stamp duty tax for each issued invoice.

For electronic invoices sent to SDI, the stamp duty must be paid quarterly on the basis of the calculations provided by the Italian tax authorities.

The Italian tax authorities will make available, within the reserved area Fatture e Corrispettivi of the Tax Box (Cassetto Fiscale), a payment service and an F24 draft with the indication of the stamp duty to be paid (determined on the basis of the amount indicated in the field 2.1.1.6 'DatiBollo' of the .XML invoice).

The 2021 Budget Law provides that for the payment of stamp duty tax on e-invoices and other documents submitted through the SDI, the taxpayer who provides the goods or services is jointly and severally liable, even where the invoice is issued by a third party.

The Italian tax authorities, through Act no. 34958/2021, introduced important changes related to the settlement of stamp duty on e-invoices. In particular, the new provisions concern: 

• the procedures, addressed to the Italian Tax Authorities, to detect e-invoices subject to stamp duty tax, and 
• the procedures, addressed to the taxpayer, for the consultation and integration of the data relating to the stamp duty tax and for its payment.

Unified municipal tax (Imposta Unica Comunale or IUC)

The IUC is composed of the following different taxes:

• Imposta Municipale Unica (IMU): Real estate tax levied on the ownership of immovable properties (buildings, rural land, farmlands), except for immovable properties owned as primary private properties.

• The standard tax rate is 0.86%.
• Depending on the municipality and status of the taxpayer, the tax rate can be increased to 1.06% or decreased to zero.
• The taxable base is generally determined on the basis of the so called ‘cadastral value’ (i.e. capitalisation of the deemed standard income that is expected to be derived from the real estate).
• The deadline for the submission of the tax return is 30 June of the year following the one in which the ownership of the immovable property has begun or in which there have been significant changes in the determination of the tax.

• Tassa sui rifiuti (TARI): A waste tax levied on the owner or the user of immovable properties.

Financial Transaction Tax (FTT)

Italian FTT applies to (i) cash equities, (ii) derivatives, and (iii) high-frequency trading transactions.

Cash equities FTT applies to the purchase of shares and other equity instruments issued by Italian companies, as well as securities (wherever issued) tracking those Italian shares (e.g. ADRs). The taxable base is the net daily balance of transactions on the same financial instruments by the same person on the same settlement date. The rate is 0.2% on OTC trades or 0.1% on trades executed in a regulated market (or multilateral trading facility).

Derivatives FTT applies to any derivative contract or securitised derivative, whose underlying value is directly or indirectly tied to Italian shares. The taxable base is the notional amount of the derivative (no netting applies), and it is subject to a special tax scale, on both the purchase and the sale legs; the amount is reduced to 1/5 for transactions executed on regulated markets and multilateral trading facilities.

High-frequency trading FTT applies to transactions on shares (wherever issued) and share-based derivatives (wherever the underlying share is issued) in the Italian financial markets; trades amended or cancelled within half a second are subject to a 0.02% rate, to the extent they exceed 60% of overall trades.

Digital service tax (DST)

As of FY 2020, corporations will apply a tax at the rate of 3% on the value of specific digital services collected, net of VAT and other indirect taxes.

The web tax is addressed to taxpayers who individually or at the group level realise during a taxable year (i.e. calendar year):

• a total amount of worldwide revenues exceeding EUR 750 million, and
• a total amount of revenues realised in the Italian territory exceeding EUR 5.5 million.

Taxpayers must pay the tax by 16 May of the calendar year following the year in which the taxable revenues were obtained.

Taxpayers also must submit an annual tax declaration regarding the provided taxable services by 30 June of the following year. For companies that are part of the same group, a single entity must be identified to comply with the above-described provisions.

The entry in force is 1 January 2020. The Italian DST shall be repealed when internationally agreed-upon provisions on the digital economy’s taxation become applicable.

The DST is aimed at the revenues collected from the provision of the following services:

• Channeling of advertisement on a digital interface targeted to the users of that digital interface.
• Offer of a multi-sided digital interface that allows users interaction and for the purposes of facilitating the direct provision of goods and services.
• The transmission of data collected about users and generated from users' activities on digital interfaces.

The collected revenues are taxable when the user uses the device to access the above digital services in the Italian territory. In order to identify the location of the user, the Italian tax authority has provided specific linking rules between the user and the Italian territory (i.e. IP address or by other means of geo-localisation).

Social security contributions

The Italian employer, in order to pay social security contributions for employees, must register with the Italian Social Security Administration (Instituto Nazionale Previdenza Sociale or INPS).

The total social security rate is around 40% of the employee's gross compensation (the rate depends on the work-activity performed by the company, the number of employees of the company, and the employee's position), and is shared as follows:

• Employer's charge is around 30%.
• Employee's charge is around 10%.