Following the introduction of updated VAT guarantee requirements for businesses outside the EU, the Italian Revenue Agency (Agenzia delle Entrate) has issued additional guidance for fiscal representatives. Starting April 17, 2025, new procedural obligations will come into effect under Article 17(3) of Presidential Decree No. 633/1972, aimed at enhancing VAT compliance.
New requirements for Fiscal Representative in Italy
Entities currently acting—or planning to act—as fiscal representatives in Italy must now submit:
- A declaration confirming compliance with the integrity standards outlined in Article 8, Paragraph 1, letters a)–d) of Ministerial Decree No. 164/1999.
- A financial guarantee, scaled based on the number of represented taxpayers, ranging from €30,000 to €2,000,000.
These documents must accompany the VAT registration form when initiating activity or updating registration details and must be submitted to the relevant Provincial Directorate of the Italian Revenue Agency.
Detailed submission guidelines
- For legal entities, each legal representative listed in the VAT declaration must individually submit an integrity declaration.
- Any changes in representation require updated declarations.
- Guarantees must be valid for a minimum of 48 months and may be provided through:
- (a) Government or state-guaranteed securities, with supporting documentation.
- (b) Bank guarantees or surety bonds, using official templates from the tax authorities.
The Italian Revenue Agency will assess the submitted guarantees and will only confirm fiscal representative status once approval is granted.
Immediate action required for existing Fiscal Representatives
Representatives active as of April 17, 2025, must submit the necessary documentation and financial guarantee by June 16, 2025. Non-compliance may result in the revocation of VAT registrations for their represented entities.
Penalties for Non-Compliance
Failure to comply with these obligations can lead to administrative fines ranging from €3,000 to €50,000. Notably, these fines cannot be reduced under the « cumulo giuridico » principle, highlighting the importance of timely compliance.
Obligations for Non-Resident Businesses
Businesses based outside the EU or EEA that wish to engage in intra-EU transactions via a fiscal representative in Italy must comply with Article 35(7 quarter) of Presidential Decree 633/72. This includes providing a financial guarantee in order to apply for or retain registration in the VIES database (used to monitor VAT-registered businesses conducting intra-EU trade).
If a foreign business does not yet have an Italian VAT number, it must submit the guarantee at the time of:
- Filing its business commencement declaration, and
- Requesting VIES registration.
Guarantee requirements for Non-EU entities
- Minimum amount: €50,000
- Accepted forms: Government or state-backed securities, a bank guarantee, or a surety bond
- Beneficiary: The Italian Revenue Agency office responsible for the representative’s tax jurisdiction
- Validity: At least 36 months
Consequences of failing to provide a guarantee
If the required guarantee is not submitted on time, the Italian Revenue Agency will issue a formal notice initiating the process to remove the foreign business from the VIES database.
The business then has 60 days to comply. If the guarantee is still not submitted after this period, the business’s Italian VAT number will be deactivated for intra-EU transactions.
Do you need a Fiscal Representative in Italy?
If you’re a non-EU company involved in intra-Community trade through Italy, you are required to appoint a fiscal representative. Eurotax can support you with fiscal representation in Italy.
Contact us today or visit our page for more information.