How to Register for VAT (IVA) in Italy (2026): Step-by-Step Guide

TL;DR: To register for VAT (IVA) in Italy, you must submit Form AA7 (companies) or Form AA9 (sole traders and partnerships) to the Agenzia delle Entrate before making your first taxable supply. There is no minimum turnover threshold for most businesses — the regime forfettario flat-rate exemption applies only up to €85,000 in annual turnover.

Last updated: July 2026

---

What Is Italian VAT (IVA) and Who Must Register?

Italian VAT — Imposta sul Valore Aggiunto (IVA) — is a consumption tax governed by Presidential Decree 633/1972. Any individual, partnership, or company that carries out business, artistic, or professional activities in Italy on a habitual basis must register for IVA before issuing their first taxable invoice. There is no turnover threshold that delays mandatory registration for most business structures.

The standard IVA rate is 22%. Reduced rates of 10%, 5%, and 4% apply to specific categories of goods and services — for example, food staples, certain medicines, and printed publications.

Who Can Avoid Registering?

The main exemption is the regime forfettario (flat-rate scheme). If your annual turnover does not exceed €85,000, you may opt into this simplified regime, which exempts you from charging IVA to customers and from most VAT filing obligations. However, forfettario taxpayers cannot deduct input VAT, so the scheme is not always advantageous — especially for businesses with significant purchases from VAT-registered suppliers.

Key point: Exceeding the €85,000 threshold during the year means you exit the regime forfettario from the following tax year and must register for ordinary IVA obligations.

---

Step-by-Step: How to Register for VAT in Italy

Registering for IVA in Italy requires submitting the correct declaration of commencement of activity (dichiarazione di inizio attività) to the Agenzia delle Entrate — the Italian Revenue Agency. The process differs slightly depending on your legal structure, but all paths result in receiving a Partita IVA (VAT number), which is an 11-digit numeric code.

Step 1 — Choose the Correct Form

• Form AA9/12: Used by natural persons (freelancers, sole traders, self-employed professionals, partnerships of natural persons).
• Form AA7/10: Used by entities (companies, associations, non-commercial bodies).

Step 2 — Complete the Form

You must declare:

• Your personal or company details (name, fiscal code, registered address)
• The nature of your activity (described by the ATECO code — the Italian activity classification code)
• The date your activity commenced or will commence
• Your chosen accounting regime (ordinary, simplified, or forfettario)
• The address of your principal place of business in Italy

Step 3 — Submit to the Agenzia delle Entrate

You can submit the registration form through three channels:

1. In person at any Agenzia delle Entrate office (sportello)
2. Online via the Agenzia delle Entrate's Entratel or Fisconline portals (requires a digital identity — SPID, CIE, or CNS)
3. Via a tax intermediary (CAF or commercialista — a registered Italian tax professional)

For companies, registration via the Registro delle Imprese (Companies Register) at the local Chamber of Commerce (Camera di Commercio) simultaneously triggers VAT registration, so a separate AA7 submission is generally not required in that case.

Step 4 — Receive Your Partita IVA

The Agenzia delle Entrate issues your Partita IVA immediately when you register in person or online. The number is valid from the date of commencement declared on the form. You must display your Partita IVA on all invoices, contracts, and official correspondence.

Step 5 — Set Up E-Invoicing via SdI

Once registered, you are required to issue electronic invoices (fattura elettronica) through the Sistema di Interscambio (SdI), the government's e-invoicing hub operated by the Agenzia delle Entrate. E-invoicing via SdI is mandatory for virtually all VAT-registered businesses in Italy. Invoices must be in XML format (FatturaPA standard) and transmitted through SdI before being delivered to the customer.

Forforfettario taxpayers below €85,000 are not exempt from e-invoicing as of 2024 onward — they must also use SdI.

---

VAT Registration Thresholds: Italy vs. Key EU Peers

Understanding where Italy sits relative to other major EU economies helps you plan cross-border trade and assess your registration obligations when selling into other markets.

Country	VAT Name	Standard Rate	Small-Business Registration Threshold	Notes
Italy	IVA	22%	None (regime forfettario up to €85,000 turnover)	Forfettario exempts from charging IVA; mandatory e-invoicing via SdI
Germany	MwSt	19%	€25,000 prior-year / €100,000 current-year (Kleinunternehmer)	Reduced rate 7%
France	TVA	20%	€85,000 (goods) / €37,500 (services) — franchise en base	Reduced rates 10/5.5/2.1%
Spain	IVA	21%	None — register before first taxable sale	Reduced rates 10/4%
Portugal	IVA	23%	€15,000 small-business exemption	Reduced rates 13/6%
Ireland	VAT	23%	€85,000 (goods) / €42,500 (services)	Restaurant/catering/hairdressing move to 9% from July 2026
Netherlands	BTW	21%	€20,000 (KOR small-business scheme)	Short-stay accommodation moved to 21% from 1 January 2026; reduced rate 9%

Sources: National revenue authority publications; verified July 2026.

---

Ongoing VAT Compliance After Registration

Once registered, you have a set of recurring obligations. Missing deadlines triggers automatic penalties from the Agenzia delle Entrate.

Periodic VAT Settlements (Liquidazioni Periodiche)

Most businesses must calculate and pay VAT due either monthly or quarterly, depending on turnover. Quarterly filers (generally those with annual turnover below €400,000 for services or €800,000 for goods) pay a surcharge of 1% on the quarterly balance in lieu of monthly payments.

LIPE — Quarterly Communication

Four times per year, you must submit a Liquidazione Periodica IVA (LIPE) — a summary of the VAT liquidations for each quarter. LIPE deadlines are:

• Q1 (January–March): by 31 May
• Q2 (April–June): by 16 September
• Q3 (July–September): by 30 November
• Q4 (October–December): included in the annual VAT return

Annual VAT Return (Dichiarazione IVA Annuale)

The annual IVA return must be filed electronically with the Agenzia delle Entrate between 1 February and 30 April of the year following the tax year. This return reconciles all periodic settlements and determines any final balance due or refundable.

IVA Rates Summary

Rate	Category Examples
22% (standard)	Most goods and services
10% (reduced)	Hotel accommodation, certain food products, passenger transport
5% (reduced)	Certain social and health services, some food items
4% (super-reduced)	Basic foodstuffs, books, newspapers, some medical devices

---

Non-Resident and Foreign Business VAT Registration in Italy

Non-resident businesses making taxable supplies in Italy must register for IVA in Italy directly. There is no registration threshold for non-resident traders — the obligation arises from the first taxable supply.

A non-EU business can register either:

• Directly (direct identification — identificazione diretta), using Form ANR/3, which gives a dedicated Italian VAT number without requiring a local entity; or
• Via a fiscal representative (rappresentante fiscale), an Italian-resident individual or entity who assumes joint liability for the non-resident's Italian VAT obligations.

EU businesses selling goods or services digitally to Italian consumers must also consider the OSS (One Stop Shop) scheme, which allows VAT registration in a single EU member state and consolidated reporting for supplies to consumers across all EU member states.

---

How KARR Helps Italian Businesses Manage IVA

KARR cloud accounting software is built for business owners who need accurate IVA compliance without a deep knowledge of Italian tax law.

• Automatic IVA rate application: KARR applies the correct IVA rate — 22%, 10%, 5%, or 4% — as you create invoices and record purchases, based on the product or service category you select.
• Threshold tracker: KARR monitors your cumulative turnover against the €85,000 forfettario threshold in real time, alerting you before you breach it so you can plan your transition to the ordinary IVA regime.
• SdI e-invoicing: KARR generates XML-format FatturaPA invoices and integrates with the SdI transmission flow, so your e-invoicing obligation is handled from the same ledger as your bookkeeping.
• LIPE preparation: KARR compiles your quarterly LIPE data automatically from posted transactions, with a pre-filing review screen so you can check figures before submission.
• Annual IVA return: Your annual Dichiarazione IVA Annuale is prepared directly from the KARR ledger — no manual re-entry, no reconciliation between separate systems.
• Offline-first architecture: KARR works without an internet connection, so you can record transactions anywhere — on-site, in transit, or at a client — and sync when reconnected.

KARR pricing starts at $0 (Free), with Pro at $12/month and Business at $29/month.

Try KARR free — set up your Italian IVA ledger, connect to SdI e-invoicing, and prepare your first LIPE in minutes.

---

Common Mistakes to Avoid When Registering for IVA in Italy

• Registering late: You must register before your first taxable supply, not after. Late registration attracts penalties.
• Wrong ATECO code: The ATECO code determines which IVA rules and reduced rates apply to your activity. An incorrect code can cause misclassification of supplies.
• Ignoring SdI immediately: Many new registrants issue paper invoices while "getting set up" — this is non-compliant from day one.
• Assuming forfettario lasts forever: The €85,000 ceiling is checked annually. Failing to track turnover is one of the most common causes of unexpected IVA back-charges.
• Forgetting LIPE deadlines: LIPE is a separate obligation from paying the periodic VAT balance. Missing it triggers automatic administrative penalties even if the tax itself was paid on time.

---