VAT management for overseas customers
Summary
Private individuals
- Delivery to an EU country via the OSS scheme: Pay VAT at the rate applicable in the country of dispatch;
- Shipping to a non-EU country: Pay 22% VAT.
Businesses
- Shipping to an EU country: VAT-exempt;
- Shipping to a non-EU country: VAT-exempt.
Information
22% VAT: when does it apply?
22% VAT is applied to all sales made within Italy. This means that if goods are shipped to Italy or to a country outside the European Union, 22% VAT is payable, regardless of whether the customer is a private individual or a business.
VAT exemption for businesses (B2B): when and how does it apply?
If your business is based in an EU country and the goods are dispatched from one EU country to another (excluding Italy), you can benefit from the VAT exemption. The same applies if the goods are dispatched to a non-EU country, regardless of the company’s country of registration. This applies only to businesses.
For private individuals (B2C) with shipments to an EU country
If the customer is a private individual and the goods are dispatched to an EU country, the VAT rate of their own country applies (OSS scheme).
Exceptions
These exceptional conditions will be assessed and applied during the quotation stage, in collaboration with the sales department.
Therefore, if a private individual resident in France purchases a product from a seller in Italy, the French VAT rate will apply. This system simplifies the declaration and payment of VAT for cross-border sales within the EU.
This means that when a private individual not resident in the European Union purchases goods or services, the Italian VAT rate of 22 per cent applies.
This exemption applies to all B2B customers who hold a foreign tax identification number (intra-EU VAT number), provided that the goods purchased are delivered to a European country of invoicing.
Conditions for VAT exemption
Delivery via our couriers
- The VAT exemption is automatic.
Shipping arranged by the buyer
- VAT at 22% applies;
- You may request a VAT refund within 15 days of collecting the goods, provided you supply documented evidence that the goods have reached a country within the European Union. Acceptable evidence includes a copy of the customs declaration and the CMR consignment note countersigned and stamped by the carrier;
- In this case, VAT will be refunded, treating the amount as a security deposit.
Non-EU companies are VAT-exempt upon presentation of the ‘Exit Stamp’, affixed by the customs authority at the time of the goods’ actual exit; this constitutes the necessary proof for claiming VAT exemption on the invoice. To be submitted within 90 days. VAT at 22% will be charged on the order, which will be refunded upon receipt of the documents within the stipulated 90-day period. If the documents are not received, the VAT amount will be invoiced.
This exemption applies to non-EU companies that present the ‘Exit Stamp’, affixed by the customs authority at the time the goods actually leave the country. This stamp constitutes the necessary proof for stating ‘VAT-exempt’ on the invoice and must be sent within 90 days.
Procedure for VAT exemption
Order subject to 22% VAT
- VAT at 22% is initially applied to the order;
- The VAT will be refunded upon receipt of the documents within the specified timeframe (90 days);
- If the documents are not received within 90 days, the amount will be invoiced as VAT.
Appoint a tax representative in Italy
- If the company does not have a permanent establishment in Italy, it may appoint a tax representative;
- In this case, the purchase is subject to national tax;
- The company may use the triangular non-taxable scheme (Article 58 of Decree-Law 331/93) to carry out a triangular intra-Community supply with the EU customer.
Appoint a tax representative in the customer’s EU country
- The company carries out an intra-Community supply not subject to VAT (Article 41 of Decree-Law 331/93) to the EU tax representative;
- Subsequently, the tax representative carries out a domestic transaction subject to local VAT in the customer’s Member State.
Using a tax representative in another EU Member State
- The company may appoint a tax representative in a Member State other than Italy and the EU customer’s Member State;
- In this case, the transaction is considered an intra-Community triangular transaction;
- The company carries out an intra-Community supply not subject to VAT (Article 41 of Decree-Law 331/93), stating on the invoice that it is a triangular transaction.