Compliance with fiscal obligations is an essential requirement for businesses operating in international markets. If you run a business that is based abroad, and you want to operate in the Italian market, the concept of “fiscal representation” is particularly important. Whether you’re selling products or services, participating in trade shows or simply managing operations that are subject to value-added tax (VAT) in Italy, understanding how fiscal representation works is essential to ensure full compliance with Italy’s fiscal and accounting obligations.

In this article, we’ll discuss what fiscal representation is and when it’s mandatory in Italy. We’ll also go over how to appoint a fiscal representative in Italy and what the representative’s duties are.

What’s in this article?

• What is fiscal representation?
  
• Regulatory framework
  
• When is fiscal representation mandatory in Italy?
  
• Differences between direct identification and fiscal representation
  
• How is a fiscal representative appointed in Italy?
  
• Duties of a fiscal representative
  
• One Stop Shop (OSS) VAT scheme and fiscal representation
  
• How Stripe simplifies VAT management in Italy
  

What is fiscal representation?

Fiscal representation is a tool available under Italian law. It allows a non-EU resident to fulfill their VAT obligations by using a resident of Italy as their representative. The fiscal representative acts on behalf of the foreign entity, assuming a series of responsibilities and working with the Italian financial administrative authorities.

Who is a fiscal representative in Italy?

A fiscal representative is a natural or legal person who, by means of a power of attorney (POA), represents a nonresident entity for VAT purposes. The fiscal representative is especially important in the case of transactions that are taxable in Italy, such as the sale of goods or provision of services. The fiscal representative in Italy is responsible for VAT registration, issuing electronic invoices, keeping VAT records, filing tax returns, and other related obligations. Fiscal representation is therefore an indispensable tool for many non-EU businesses.

Regulatory framework

The rules governing fiscal representation in Italy are contained in Presidential Decree 633/1972, Consolidated VAT Law. Article 17, specifically, defines the cases in which VAT is payable by residents of Italy on behalf of nonresident persons.

Another key regulation is Presidential Decree No. 441 dated November 10, 1997. Article 1, paragraph 4 defines the formal procedures for appointing a fiscal representative, which includes obtaining a public deed—a registered private document or letter filed in a special register at the appropriate VAT office. The fiscal representative, who must be a resident of Italy and have a VAT number, assumes joint liability with the non-EU business for all VAT obligations.

Recently, Legislative Decree No. 13/2024 was introduced, which is of particular importance to businesses not located in the EU or European Economic Area (EEA). It established new eligibility requirements for fiscal representatives, including an obligation to provide adequate capital guarantees. This obligation, defined in detail by subsequent provisions issued by the Italian Revenue Agency, aims to strengthen the protection of the tax office.

These regulations have been supplemented over time with an array of resolutions and circulars issued by the Italian Revenue Agency that have provided clarifications and operational guidelines on specific aspects of fiscal representation. Taken as a whole, these documents form a dynamic and comprehensive regulatory framework.

When is fiscal representation mandatory in Italy?

The appointment of a fiscal representative is mandatory for businesses that have registered offices in non-EU or non-EEA countries, carry out transactions subject to VAT in Italy, and do not have a permanent establishment in Italy. In these cases, direct identification—an alternative to fiscal representation covered in more detail below—cannot be used. The appointment of a fiscal representative therefore becomes the only way to fulfill fiscal obligations and assert the business’s rights regarding VAT in Italy (i.e., the right to deduct VAT on purchases or to obtain VAT refunds).

Transactions that require fiscal representation

Some examples of transactions that require the appointment of a fiscal representative for non-EU businesses—and in general, when the reverse charge mechanism doesn’t apply or direct identification is not possible—include the following:

• Transfer of assets in Italy: Specifically, when a non-EU entity transfers assets without a permanent establishment in Italy.

• Provision of so-called “generic services” in Italy: When a B2C entity not based in the EU provides generic services—as defined by Presidential Decree 633/72—such as consulting, online training, or digital services, to private customers in Italy.

• Management of a warehouse or storage facility in Italy: When a non-EU business ships goods from a warehouse in Italy to Italian customers.

• Participation in trade shows or events in Italy: Specifically, when the non-EU entity sells goods directly at these events.

• Online sales via a marketplace with storage in Italy: When a non-EU business sells through platforms such as Amazon or eBay and uses Italian logistics centers (e.g., Amazon FBA) to store its products.

• Purchases or sales with intracommunity transport: When a non-EU business conducts sales or purchases that require transportation to or from other EU countries.

• Purchases made in Italy: When a non-EU business purchases goods in Italy—either directly or through a fiscal representative—and the transaction is subject to VAT.

• Issuance of electronic invoices to customers in Italy: Because a non-EU entity selling goods or services to customers in Italy can’t issue e-invoices directly through the Exchange System (SdI), a fiscal representative is needed. The representative is responsible for drawing up and sending the e-invoice via the SdI, thereby following the technical rules instated by the Italian Revenue Agency.

• Sales that require submission of Intrastat forms: When a non-EU entity—through its fiscal representative in Italy—carries out purchases or sales with other EU countries, it is the representative who must submit the Intrastat forms to the relevant authorities, reporting the information on intra-EU transactions.

• Imports from third countries with a fiscal representative in Italy: When a non-EU business exports goods to Italy and uses a fiscal representative to handle customs clearance, the representative is responsible for paying the import VAT due when the goods enter Italian customs territory.

• Placement of goods in VAT warehouses in Italy: When a non-EU business brings goods into Italy and places them in a VAT warehouse for its own use (i.e., stock), it must appoint a fiscal representative. A VAT warehouse is a special type of authorized warehouse where goods can be stored without needing to immediately pay VAT. The tax is paid only when the goods are extracted, when they are sold, or when they are intended for internal use in the Italian territory. At that time, the Italian buyer pays the VAT, but it is the fiscal representative who takes care of the invoice, the payment of the tax, and the document management. This mechanism can facilitate logistics and international trade operations, especially for nonresidents.

Cases when a fiscal representative is required

In short, fiscal representation is necessary when:

• The business is not established in an EU or EEA country with which Italy has specific agreements
  
• The foreign business does not have a permanent establishment in Italy
  
• The foreign business carries out transactions subject to VAT in Italy (i.e., supplying goods or services)
  
• The reverse charge mechanism does not apply to the transactions carried out
  

Differences between direct identification and fiscal representation

Direct identification is a method that allows a certain kind of foreign entity—a resident of either an EU country or a country that Italy has a specific agreement with—to obtain an Italian VAT number without having to appoint a fiscal representative. The foreign business registers directly with the Italian Revenue Agency, becoming a VAT-taxable person in Italy and assuming all tax and accounting obligations in its own name. This solution is ideal for businesses that want to maintain direct control over their Italian VAT position.

Direct identification is an alternative to fiscal representation. The method is governed by Article 35 of Presidential Decree 633/1972. To obtain direct identification, you must submit form ANR/3 to the Italian Revenue Agency and receive an Italian VAT number.

The differences between fiscal representative and direct identification

Understanding the differences between a fiscal representative and direct identification is essential for choosing the option that best suits your business. If you have an EU-based business, carefully consider the advantages of direct identification over appointing a fiscal representative in Italy.

How is a fiscal representative appointed in Italy?

The fiscal representative is appointed by means of a formal document, generally a special POA. The document must be drawn up in writing and filed with the Italian Revenue Agency.

Appointing a fiscal representative in Italy, step-by-step

To correctly appoint a fiscal representative in Italy, you’ll need to follow these steps:

• Draw up a POA: This document authorizes the fiscal representative to act on your behalf for all obligations under Italian VAT legislation. The POA must clearly identify the non-EU entity, list the delegated fiscal obligations, and specify the duration of the appointment.

• Choose a reliable fiscal representative: The individual needs to have specific experience in international VAT and a solid grasp of Italian legislation.

• Prepare the necessary documentation: Your business needs Chamber of Commerce registration (or equivalent document) for the foreign business, an identity document for the legal representative, and articles of association or memoranda of assocation—translated and certified if not in Italian.

• Register the appointment with the Italian Revenue Agency: Use form AA7/10 (for legal persons) or AA9/12 (for individuals), and attach both the POA and the required documents.

• Request an Italian VAT number: This needs to be registered in the name of the non-EU business but managed through the fiscal representative. The VAT number you receive must be used for all VAT transactions carried out in Italy.

• Set up electronic invoicing systems: You must specify the recipient code of the representative or the SdI channel, to enable e-invoices to be issued and received in digital format in accordance with Italian regulations.

• Access the Italian Revenue Agency’s online services: Activate the authorizations needed to access services such as Entratel and Fisconline, and the Intrastat portal.

• Notify the appointment of any partners and fiscal, customs, or logistics operators: These are entities with whom you collaborate in Italy, in order to standardize fiscal and administrative management.

Duties of a fiscal representative

Once appointed, a fiscal representative in Italy assumes a series of specific obligations vis-à-vis the tax administrative authorities. The representative’s main task is to act on behalf of the non-EU entity for all VAT obligations related to transactions carried out in the country.

The representative’s main activities include:

• Issuing electronic invoices: Issuing on behalf of non-EU entities, in accordance with the technical specifications of the SdI

• Keeping VAT records: Maintaining a record of all issued invoices, purchases, and payments, as required by Italian law

• Filing of periodic VAT returns: Filing returns monthly or quarterly—depending on turnover—in addition to annual VAT returns

• Payment of VAT due: Paying by the appropriate due date (generally the 16th day of the month following the reference period)

• Preparation and submission of Intrastat forms: If applicable, submitting the forms by the 25th day of the month following the reference month for intracommunity transactions

• Requirements related to imports: Includes paying import VAT at customs

• Management of obligations related to VAT warehouses: Obligations include correctly invoicing when goods are withdrawn from a warehouse (i.e., when they are taken out to be sold or used).

The fiscal representative is also responsible for the digital storage of invoices and records in accordance with the terms established by law. They can also be subject to checks and audits by the Italian Revenue Agency.

One Stop Shop (OSS) VAT scheme and fiscal representation

The OSS scheme, which replaced the previous Mini One Stop Shop (MOSS) scheme on July 1, 2021, is an optional system that allows non-EU B2C businesses selling to customers in the EU to declare and pay VAT in a single member state. This is instead of registering for VAT in each individual country of destination.

In the context of tax representation, the OSS scheme is particularly relevant for non-EU businesses selling to private customers in Italy. If these entities adhere to the OSS scheme (i.e., the non-EU OSS version), they can avoid appointing a fiscal representative in each EU country of destination (including Italy). Instead, they can centrally manage their VAT returns through a single member state.

However, participation in the OSS scheme is limited to certain types of transactions:

• Remote sales of goods within the EU
  
• Provision of electronic services, telecommunications, and broadcasting services to private individuals
  

By contrast, B2B transactions, imports, and activities involving physical storage in Italy (i.e., logistics or warehousing) are not covered by the OSS regime. In these cases, the non-EU entity is still required to appoint a fiscal representative in Italy to fulfill local VAT obligations.

How Stripe simplifies VAT management in Italy

When you sell products or services internationally, managing VAT in multiple jurisdictions can become complex and risky. If you operate in countries such as Italy that require non-EU businesses to appoint fiscal representatives, Stripe Tax can simplify the process. It allows you to coordinate a country’s requirements with other international fiscal obligations. Stripe Tax monitors your transactions, alerts you when and where you need to register for fiscal purposes, automatically calculates and collects VAT (including special schemes such as OSS), and generates reports for each filing location to help you file your tax returns. This is the ideal solution for those seeking simplicity and fiscal compliance without having to deal with bureaucracy on their own.