Urgent: Time is running out for Non-EU businesses to secure bank guarantee for VIES registration in Italy
- New Bank Guarantee Requirement: Non-EU businesses must now secure a financial guarantee of at least €50,000 to register for or maintain their Italian VAT number in the EU’s VAT Information Exchange System (VIES). This guarantee is essential for conducting tax-exempt intra-EU transactions and must remain valid for a minimum of three years.
- Compliance Deadline and Grace Period: While the original deadline for compliance was set for June 13, 2025, a 60-day grace period has been granted for businesses to meet these requirements. Companies must act promptly to avoid the risk of having their VAT number cancelled and being removed from the VIES database.
- Consequences of Non-Compliance: Failure to comply could result in significant repercussions, including ineligibility for VAT-exempt intra-EU transactions, the need to reapply for VAT registration, potential penalties, and reputational damage. Affected businesses are urged to review their VAT registration status and consult with their fiscal representatives to secure the necessary guarantees as soon as possible
Source Meridian
Italy Tightens VAT Rules: New Financial Guarantee Requirements for Non-EU Companies
- Italy enforces stricter VAT registration rules from April 15, 2025
- Changes impact companies outside the EU and EEA
- Non-EU companies must provide a financial guarantee of 50000 EUR for VAT registration
- Without VIES registration, cross-border transactions in the EU are not possible
- Financial guarantee options include state-backed securities, bank guarantees, or insurance guarantees
- Deadline for already registered companies was June 13, 2025
- Failure to meet the deadline results in automatic removal from VIES
- Removal from VIES leads to operational and financial consequences
- Companies cannot apply zero VAT rate for cross-border sales in the EU
- Risk of customs delays or shipment refusals at EU borders
- Potential loss of EU business partners due to VAT and customs issues
- Urgent action is needed to secure financial guarantees to maintain market access and business continuity
Source: eurofiscalis.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
