- New compliance step for non-EU businesses trading in the EU starting 15 April 2025
- Affects non-EU or non-EEA businesses registered or applying for VAT in Italy, especially those in the VIES database
- Required to strengthen tax compliance and reduce VAT fraud
- Minimum guarantee of €50,000 needed
- Options for guarantee include Italian government bonds, bank guarantee, or insurance surety bond
- Deadline for existing VIES members is 13 June 2025
- Missing the deadline results in removal from the VIES list, limiting EU trade
- Secure the guarantee promptly as the process may take time
Source: globalvatcompliance.com
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Italy’s New VAT Guarantee Requirement for Non-EU Businesses
- Implementation of Guarantee Requirement: Starting April 15, 2025, non-EU businesses using a fiscal representative must provide a €50,000 financial guarantee to maintain or gain registration in the VIES system for intra-EU trade. This requirement aims to enhance VAT compliance and combat fraud.
- Affected Parties and Deadlines: The new rule affects non-EU sellers who utilize a fiscal representative and wish to engage in B2B transactions through VIES. Existing businesses must submit the guarantee by June 13, 2025, with a potential 60-day grace period before losing VIES access and possibly their Italian VAT number.
- Compliance Options and Consequences: Non-compliance can lead to significant disruptions, including removal from VIES, cancellation of VAT IDs, and penalties for fiscal representatives. Sellers can either pay the guarantee, deregister from Italian VAT, or establish an EU company to bypass the requirement and ensure continued access to VIES for their operations.
Source VATai
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