A VAT number in Italy, known as a Partita IVA, is a legal requirement for every Italian company. The process of VAT registration is relatively quick, often taking just 24–48 hours. This efficiency is thanks to streamlined procedures recently introduced in Italy, which are far simpler compared to the more complex processes in other EU countries, such as the UK or Cyprus. In most cases, VAT registration is completed during the company incorporation process.
Italian companies also have a company number, but unless your company has recently upgraded from a light branch to a full branch, your company number will usually be identical to your VAT number.
The Two-Part VAT Registration Process
New legislation introduced last year split VAT registration in Italy into two stages:
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Domestic VAT Registration (Partita IVA): This is the mandatory initial registration that authorises your company to trade legally within Italy, whether it is active or dormant. It is usually handled during incorporation by a notary public or your company lawyer.
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International VAT Registration (VIES): For companies trading internationally, registering for an international VIES tax number is essential. It allows legal trade across EU member states, and once obtained, your company will be listed in the European Union’s online registry, accessible to clients worldwide. This stage is typically managed by a chartered secretary or your company accountant via the local Tax Agency.
If you are unsure how these obligations fit into your overall compliance, professional VAT consultancy can help ensure you meet both domestic and international requirements without delays or errors.
Why the Process Changed
Although the new two-part system can be more complex, sometimes taking several months to complete for the international stage, it offers greater security against VAT fraud. By making it harder for fraudulent entities to obtain international VAT status, the system protects legitimate businesses and strengthens Italy’s reputation in global trade.
Staying Compliant Beyond Registration
VAT registration is only the first step. Once your company is active, you must maintain ongoing compliance by filing returns and keeping accurate financial records. Your VAT filings should align with your wider fiscal responsibilities, including income tax and other corporate obligations. For guidance on these ongoing duties, you can refer to tax return requirements in Italy to ensure you stay on top of deadlines and avoid penalties.
Conclusion
VAT registration in Italy has become faster at the domestic level but more thorough at the international stage, striking a balance between efficiency and fraud prevention. By understanding the two-part process and staying compliant with both VAT and wider tax obligations, your business can operate smoothly and confidently both in Italy and abroad.