Selling to Italy 2026 — VAT Rates, Rules & Compliance

This guide covers the Italy-specific rules, rates, and compliance requirements for sellers based outside the EU shipping to Italian customers.

For the underlying EU mechanisms that apply across all member states, see:

EU Overview — IOSS, OSS & Compliance — general obligations for non-EU sellers
Selling to EU Consumers (B2C) — IOSS registration, the €150 threshold, charging VAT at checkout
Selling to EU Businesses (B2B) — reverse charge mechanism and zero-VAT invoicing

VAT Rates in Italy (IVA)

In Italy, VAT is known as IVA (Imposta sul valore aggiunto). Italy has a four-tier rate structure. When you sell to an Italian consumer under the IOSS scheme, you must charge the correct Italian IVA rate at checkout.

Standard Rate: 22%

Applies to the majority of goods: electronics, clothing (including children’s clothing), cosmetics, most digital services (SaaS, downloads, streaming), and physical goods not listed below.

Children’s clothing and footwear are standard-rated at 22% IVA in Italy — not exempt or reduced.

Reduced Rate: 10%

Applies to:

Some food products not covered under 4% (certain preserved and processed foods)
Passenger transport (air, rail, bus for specific routes)
Hotel and tourist accommodation
Restaurant and catering services
Agricultural products and inputs
Some cultural event tickets
Certain medical devices

Reduced Rate: 5%

Applies to a narrow set:

Veterinary products and animal feed for pets
Some specific goods designated by Ministerial Decree
Certain social cooperative services

Super-Reduced Rate: 4%

Applies to:

Basic foodstuffs (bread, pasta, milk, eggs, fresh vegetables, fresh fruit)
Physical books (printed books and textbooks)
Newspapers and periodicals (print)
Agricultural machinery and inputs for farming
Aids and equipment for disabled persons

Your e-commerce platform must be configured with the correct Italian IVA categories. The 4% rate is relevant if you sell print books or basic physical food items directly to Italian consumers.

Currency: Euro (EUR)

Italy uses the Euro and has done so since 1 January 2002. All invoices and VAT amounts for Italy are denominated in EUR.

Selling to Italian Consumers (B2C)

No threshold for non-EU sellers

As a seller based outside the EU, there is no threshold for selling to Italian consumers. The EU’s €10,000 threshold applies only to businesses established inside the EU. From your very first sale to an Italian consumer, you must comply with Italian IVA rules.

IOSS vs non-IOSS in Italy

If you sell physical goods under €150 to Italian consumers, registering for IOSS is strongly recommended.

Without IOSS (DAP — Delivered at Place):

The parcel is stopped by Italian customs (Agenzia delle Dogane e dei Monopoli)
Poste Italiane or a courier contacts the customer to collect outstanding IVA
The hidden cost: Poste Italiane charges a customs handling fee — typically €8–€15 per parcel. Private couriers (BRT, GLS, DHL) charge similar fees
Italy has a large and growing e-commerce market, but Italian consumers are known for low tolerance of unexpected fees. IOSS dramatically improves conversion and reduces returns.

IOSS eliminates carrier handling fees because VAT is cleared at the point of sale.

The €3 customs duty (from 1 July 2026)

A flat €3 customs duty per item applies to all parcels under €150 entering the EU from July 2026. Ensure shipping labels include accurate HS codes and correct product descriptions in English or Italian.

Selling to Italian Businesses (B2B)

For sales to a VAT-registered Italian business, the standard EU B2B rules apply.

Validate the Partita IVA. Italian VAT numbers start with ‘IT’ followed by 11 digits (e.g., IT12345678901). Always validate on VIES before zero-rating the invoice.
Reverse charge. Do not charge VAT. The Italian business accounts for IVA on their own Italian return.
Invoice statement. Your invoice must clearly state “Reverse Charge” or in Italian: “Inversione contabile” (or “Reverse Charge ex art. 17, DPR 633/1972” for the technically precise reference).

Key Compliance Requirements for Italy

Invoice retention — 10 years

Italian law requires retention of all VAT invoices and related accounting records for 10 years from the end of the tax year.

Invoice requirements

Italian invoices must include your VAT number (Partita IVA), the customer’s address, a unique sequential invoice number, the IVA rate applied per line item, and the date of supply. Invoices must be issued by the 15th day of the month following the supply.

SDI Electronic Invoicing (Sistema di Interscambio)

Italy operates a mandatory electronic invoicing system called SDI (Sistema di Interscambio) for all VAT-registered Italian businesses. Italian companies must send and receive invoices through the SDI platform in XML format (FatturaPA).

As a non-Italian seller without an Italian VAT registration, SDI does not apply directly to you. You are not required to send invoices via SDI. However, your Italian B2B customers will expect your invoices to include information they need to record on their SDI system, including the codice destinatario (SDI routing code) or the customer’s certified email address (PEC). For significant B2B relationships with Italian companies, ask your customer for their SDI codice destinatario to include on the invoice header — this avoids administrative friction on their end.

Codice Fiscale for customs

Italian customs (Agenzia delle Dogane) may request the recipient’s Codice Fiscale (Italian tax ID) for parcels above certain value thresholds delivered to Italian consumers. Some carriers handle this automatically; others prompt the customer at delivery. This is primarily a carrier logistics issue rather than a seller compliance requirement, but it can cause delivery delays.

Shipping to Italy: Documentation

Electronic customs data: ensure your carrier transmits customs data electronically.
Accurate descriptions: use specific product descriptions with correct HS tariff codes.
IOSS number: if using IOSS, your IOSS number must be electronically transmitted — manual notation is not sufficient.

Selling from a Specific Country?

The Italy-specific rules above apply to any international seller.

United Kingdom — Post-Brexit, GB sellers shipping to Italy face standard non-EU customs requirements. Italy is one of the UK’s largest EU trading partners.
United States — guide coming soon
Australia — guide coming soon