①Overview of Italian VAT
There is no low tax rate in Italy. The Italian tax bureau has a special invoicing system for local Italian companies. The invoicing system data is connected to the back-end of the tax bureau data. Although the VAT rate for B2B transactions between EU companies is g, companies need to collect and declare invoices for B2B transactions so that the tax bureau can govern and compare the invoices.
②Situations where VAT needs to be applied in Italy
First, the company is established in Italy, has inventory in Italy and sells in Italy; second, if the company is established in other EU countries (regions), it has inventory in Italy or its sales in Italy exceed Italy’s long-distance sales threshold of 35,000 euros; third, if the company is established in a country (region) outside the EU, such as China, it has inventory in Italy, or no inventory in Italy, and its one-year sales from other EU countries (regions) to Italy exceed the country’s long-distance sales threshold.
③Materials to be submitted for application
Business license, legal person ID card or legal person identity certificate (passport), power of attorney, and tax agency agreement must be signed.
④Materials to be submitted when declaring VAT
Includes sales report, customs clearance bills, etc. If zero declaration, a zero declaration letter is required.