If it is not an Italian cross-border company, but it uses an Italian warehouse, if this is the case, you must register for VAT in Italy, even if you do not set up your own physical office in Italy. It should be reminded that Italy’s VAT declaration and registration process is different from that of EU countries such as Britain and Germany. So what are the precautions for the Italian VAT registration and declaration process?
1. First, let’s get to know the Italian VAT value-added tax rate.
First of all, 4% is the lowest tax rate, which generally covers basic necessities of life such as food and newspapers. Secondly, there is a 10% tax rate. This tax rate is generally applicable to the tourism service industry, as well as related to hotels and catering. The last one is the standard tax rate, which is applicable to many situations. For most cross-border sellers, the standard tax rate of 22% is adopted.
2. What are the precautions for the Italian VAT value-added tax declaration process.
Sellers usually must appoint a VAT tax representative when registering, and the appointment of this representative must also be an appointment in the sense of a public act. If appointed privately, some conditions must be met. The VAT representative can be a natural person or a legal person, but must be an Italian citizen and reside in Italy.
Generally, sales staff must record their company’s sales every day during the month. According to some legal provisions, this period can also be changed, but under normal circumstances it is still within the same month. It should be noted that each invoice issued on the VAT bill must have the serial number of the entry, the amount that should be paid, the VAT that should be paid and the total amount of the invoice, the date of issuance and the name of the person, etc. wait.
The taxpayer must submit the VAT return for the current year before the end of April of the following year, and also needs to submit monthly and quarterly returns to the Italian tax bureau. .
3. When making Italian VAT declarations, sellers can also make monthly and quarterly declarations based on their actual circumstances.
If the declaration is made on a monthly basis, the value-added tax needs to be calculated on a monthly basis, and a declaration needs to be made every month. At the same time, the annual value-added tax return must be filed at the end of the year. If you file on a quarterly basis, you must submit a return every quarter.