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Italy’s new VAT rules, effective April 2025, mandate a €50,000 financial guarantee for non-EU businesses (excluding UK and EEA) using fiscal representatives, to combat VAT evasion and fraud in the country.
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The guarantee can be a bank guarantee, insurance bond, or direct deposit, and must be submitted by June 14, 2025. Failing to comply risks VAT deregistration, VIES deactivation, and enforcement action.
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The financial guarantee is valid for 36 months, while fiscal representatives face separate guarantee requirements based on the number of companies they represent, with validity for 48 months.
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Non-EU sellers may bypass the guarantee by either canceling Italian VAT registration and using OSS/Deemed Supplier rules or incorporating an EU-based company, though both options have operational and cost implications.
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Delaying action risks deactivation of VAT/VIES numbers, penalties of €50,000, and suspension from marketplaces such as Amazon, with grace periods of up to 90 days to submit valid guarantees.
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To comply, non-EU sellers must begin preparing documentation with banks or insurers, using the official guarantee template, translating documents into Italian, and including an Apostille to meet submission requirements.
Source: avask.com
