Following the introduction of updated VAT guarantee rules for non-EU businesses, the Italian Revenue Agency (Agenzia delle Entrate) has issued further guidance specifically for fiscal representatives. Beginning April 17, 2025, new procedural obligations will apply under Article 17(3) of Presidential Decree No. 633/1972, aimed at strengthening VAT compliance.
New documentation and guarantee obligations
Entities currently acting, or intending to act, as fiscal representatives in Italy must now provide:
- A declaration affirming compliance with the integrity criteria set out in Article 8, Paragraph 1, letters a)–d) of Ministerial Decree No. 164/1999.
- A financial guarantee, scaled according to the number of taxpayers represented, ranging from €30,000 to €2,000,000.
These documents must be submitted along with the VAT declaration form when initiating activities or updating VAT registration details, directly to the relevant Provincial Directorate of the Italian Revenue Agency.
Further Details on submission requirements
- If the fiscal representative is a legal entity, each legal representative listed in the VAT declaration must submit an individual integrity declaration. Any changes in representation must be reported with updated declarations.
- Guarantees must be valid for at least 48 months and may be provided through:
a) Government bonds or state-guaranteed securities, with appropriate documentation.
b) Bank guarantees or surety bonds, using official templates supplied by the tax authorities.
The Italian Revenue Agency will evaluate the submitted guarantees and notify representatives upon approval. Fiscal representative status will only be granted once this verification is successfully completed.
Urgent compliance required for current fiscal representatives
Those serving as fiscal representatives as of April 17, 2025, must submit the required declaration and financial guarantee by June 16, 2025. Failure to comply may result in the initiation of procedures to revoke VAT registrations for the entities they represent.
Consequences of Italian fiscal representative for non-compliance
Non-compliance with these new obligations carries serious consequences, including administrative fines ranging from €3,000 to €50,000. These penalties are not eligible for reduction under the “cumulo giuridico” principle, underscoring the need for timely adherence.
Who is affected? Non-Resident Taxable Persons
Foreign businesses that are based outside the EU or in an EEA (European Economic Area) country and want to conduct intra-EU (intra-Community) transactions through a fiscal representative in Italy must provide a financial guarantee. This is required by Article 35(7 quarter) of Presidential Decree 633/72 to apply for or keep their listing in the VIES database (used to track VAT-registered businesses doing intra-EU trade).
If a foreign business does not yet have an Italian VAT number, it must submit this guarantee at the same time as:
- Filing its declaration to start business in Italy, and
- Requesting inclusion in the VIES database.
About the Guarantee:
- The guarantee must be at least €50,000,
- Provided in the form of government/state-backed securities, a bank guarantee, or a surety bond,
- Issued in favor of the Italian Revenue Agency office responsible for the fiscal representative’s tax location,
- Valid for at least 36 months.
What happens if no guarantee is provided?
If the guarantee isn’t submitted on time, the Italian Revenue Agency will formally notify the fiscal representative that it is starting the process to remove the foreign business from the VIES database.
After receiving this notice, the business has 60 days to submit the required guarantee (either directly or through their fiscal representative).
If the guarantee is still not provided after 60 days, the Italian VAT number of the foreign business will be automatically removed from the VIES system, meaning it can no longer carry out intra-EU transactions using that number.
Are you a non-EU company conducting intra-Community transactions through Italy? You must appoint a fiscal representative in Italy. For this Eurotax can help you with fiscal representation in Italy. Contact us here or visit our page.
