To sell products or services online in Italy, it's important to understand and comply with key administrative and tax requirements. These requirements vary depending on whether you're selling products or services and they are important to operating your business legally from the start.

In this article, we cover the basics of selling online in Italy, including specific regulatory obligations that apply to different types of online businesses and strategies to boost sales and remain competitive.

What's in this article?

• Overview of the tax and legal requirements to sell online in Italy
  
• Choosing between selling products or services online
  
• Administrative, tax and legal requirements for selling products online
  
• Key strategies for selling products online
  
• Administrative, tax and legal requirements for selling services online
  
• Key strategies for selling services online
  

Overview of the tax and legal requirements to sell online in Italy

To sell products or services online in Italy, it's important to register your business and obtain a value-added tax (VAT) number. Anyone running a business in Italy is required to apply for a VAT number.

You also need to select the right tax regime, draft terms and conditions of sale and make sure you comply with all current e-commerce laws, including the General Data Protection Regulation (GDPR).

However, the first step to selling online is to decide if you want to sell products or services.

Choosing between selling products or services online

Many factors can help determine your choice, including your budget, skills and personal preferences. Here's how you can make your decision:

• Evaluate your skills
  Think about where you excel. You might be talented at creating handmade items – such as jewellery or home accessories – or you might have experience in logistics. If these are your strengths, selling products online could be a promising option. If you've mastered professional skills – such as design, marketing or software development – selling services online could be the better choice.

• Assess costs
  Selling products online usually requires a significant initial investment, including buying wholesale products or materials to make products. You should also factor in the costs for packaging, shipping and warehouse management. Selling services, on the other hand, could require investing in software, online tools or platforms.

• Study the market and the competition
  Consider what your potential customers want. Decide if they are more interested in buying products, solutions or expertise. You should also analyse the competition to discover the best opportunities and where you have the best chance of standing out.

• Analyse trends in the Italian market
  Find out what products or services are most in demand online in Italy today. This can help you discover any emerging opportunities.

• Look into applicable legal and tax obligations
  Selling products online involves strict requirements for warranties, returns, right of withdrawal, labelling (if applicable) and product compliance. The regulations for selling services online are usually less stringent, but you will still need to meet obligations related to contracts, terms of service and data protection.

• Consider your personal preferences
  You might wish to create products to sell online because you love crafts or you might be interested in resale because you enjoy buying and selling. Alternatively, you might want to offer your time, skills and experience by offering services online.

Administrative, tax and legal requirements for selling products online

Here's a step-by-step guide to start selling products online in Italy:

• Obtain a VAT number
  The first step is to obtain a VAT number from the Italian Revenue Agency (Agenzia delle Entrate). Select the right Classification of Economic Activity (ATECO) code for e-commerce, namely 47.91.10 (i.e. "Retail trade of all types of products via the Internet"). Next, choose the tax regime that fits your situation best. This could include the ordinary regime or the flat-rate regime, which is simplified and offers a lower tax rate if you are eligible.

• Register with the Business Register
  Once you have a VAT number, register with your local Chamber of Commerce's Business Register.

• File a Certified Notice of Business Start (SCIA)
  File an SCIA to report the launch of your business. You'll need to provide the web address of the site where you intend to sell products.

• Register with the Italian National Social Security Institute (INPS)
  To sell products online, you must register with the INPS using the artisans and traders scheme to pay required social security contributions. You can use the Single Business Communication (Comunicazione Unica d'Impresa), which allows you to start, change or close a business in Italy by submitting documents to multiple public administrations through a single channel.

• Comply with VAT regulations

  • For B2C sales in Italy, you must charge VAT on the products sold. Different rates (i.e. 22%, 10% or 4%) apply depending on the type of goods sold. For B2C product sales in other EU countries, Italian VAT applies up to €10,000 turnover per year. Above this threshold, VAT is applied in the customers' countries. The seller can opt in to the One Stop Shop (OSS) scheme to simplify VAT reporting and payment across various EU countries. B2C online sales of products outside the EU are typically considered exports and aren't subject to VAT in Italy.
    
  • For B2B online sales of products in the EU, the reverse-charge mechanism usually applies. B2B online sales of products in non-EU countries are typically not subject to VAT in Italy (Article 7-ter of Presidential Decree 633/1972).
    

• Create a GDPR-compliant website
  Your online store must comply with the GDPR. It should feature privacy and cookie policies, clear terms and conditions of sale, information about the customers' right of withdrawal, VAT-inclusive prices and shipping and returns procedures.

• Manage payments
  Accepting secure electronic payments is key to selling products online. Choosing a payment service provider – such as Stripe – helps you handle payments quickly and easily and allows you to support the payment methods best suited to your business. With solutions such as Stripe Payments and its Optimised Checkout Suite, you can accept payments globally, both online and in person, boost conversion rates and ensure compliance, saving hours of technical work.

• Implement electronic invoicing
  Electronic invoicing is mandatory. You'll need to create, send and store invoices electronically in accordance with the Italian Revenue Agency's guidelines.

• Comply with customs requirements (for sales outside the EU)
  If you plan to sell products outside the EU, you will need to issue export invoices and complete the declarations required to ship goods, among other requirements.

What type of VAT number do I need to sell online?

There isn't a specific type of VAT number for selling online in Italy. Instead, you will need to choose the tax regime that's best for you. There are two main tax regimes:

• Ordinary regime
  The ordinary tax regime involves detailed accounting and requires applying VAT to sales. The taxable income is based on personal income tax (IRPEF) brackets.

• Flat-rate regime
  The flat-rate regime is a simplified system that offers advantages to small businesses that meet specific criteria, such as revenue limits. It features a lower tax rate because of a substitute tax (i.e. 5% for the business' first five years; 15% after that). This lower tax rate is applied to a share of the income – known as the profitability coefficient – which is usually 40% for e-commerce. Under this regime, businesses are exempt from applying VAT.

Key strategies for selling products online

Understand the market

Conduct market research to determine what customers want. This can help you identify a niche or unmet need, study customer behaviour, track trends and research your competitors to identify products with strong sales potential.

Decide what products to sell online

Analysing actual data can be a smart approach. For example, a 2024 National Institute of Statistics (Istat) study asked Italian customers 14 years old and up what they purchased online in the previous three months. Here are the top product categories for online sales in Italy:

• Clothing and accessories
  This is the most popular category. Around 23% of Italians surveyed stated that they purchased clothes, shoes or accessories online in the three months prior to the study. This is a major, fast-growing market with many niches to explore, from sustainable fashion to activewear and personalised clothing.

• Household goods
  In the survey, almost 14% of shoppers selected household goods, furniture or gardening products when asked what they last purchased online. This category performs well because it allows shoppers to purchase online products that are difficult to find in brick-and-mortar shops.

• Streaming subscriptions
  Films, TV shows and sports events are increasingly purchased in digital form. Around 13% of those surveyed stated that they subscribed to a streaming platform.

• Transportation
  Around 11% of those surveyed said they purchased transportation services online. If you're interested in tourism or urban transportation, consider this category.

• Cosmetics
  Almost 10% of customers surveyed purchased cosmetics and wellness products.

Determine how to source the products you intend to sell online

There are four possible methods for sourcing products to sell online:

• Make the products by hand
  This is the ideal method if you have specialised skills. It allows you to offer unique, customised items with a high perceived value. To set prices, you can factor in the time spent making the items and the cost of raw materials.

• Buy products wholesale
  This involves purchasing large quantities of items from suppliers or manufacturers at discounted rates, then selling them online at a higher price. While this method requires an up-front investment for inventory and warehouse management, it also gives you complete control over quality and shipping.

• Use dropshipping
  With dropshipping (i.e. third-party online selling), you sell products online without physically possessing them. When a customer places an order, the supplier ships the product to the customer. The initial investment is low, but this method requires selecting your partners carefully to ensure product quality and reliable delivery times.

• Create digital products
  You can create and sell digital products online (e.g. eBooks, online courses, software, templates, music, pictures, etc.) without having to manage inventory or physical shipping. Customers receive the products through downloads, apps or emails. This model offers optimal flexibility and potentially large profit margins, but it demands superior content quality and intellectual property protection.

Choose your e-commerce platform

You can sell products online through your own e-commerce website or through a marketplace platform. Here are the key differences:

• Creating your own online store: This method gives you full control. You can customize the shopping experience, develop your brand and manage customer relationships your way. A larger initial investment is required for the website's development, marketing and technical management.

• Using a marketplace: This allows you to reach a large client base instantly. The downside is that you'll need to pay commissions on sales and follow the platform's rules. Standing out from the competition can be more challenging.

Your choice depends on many factors, including your budget, digital skills and how much control you want to have.

Refine your product catalogue

To turn visitors into customers, a carefully curated catalogue is important. Create compelling product listings with clear titles, detailed descriptions and professionally shot pictures and videos. Accurate information can lower customer doubts and boost conversion rates.

Implement a digital marketing strategy

Attracting customers requires a multi-channel marketing strategy. You can:

• Apply search engine optimisation (SEO) strategies: This can help improve your content's rankings in search results.

• Promote via social media: Regularly posting high-quality content will help you develop a community around your brand.

• Use email tools: This includes newsletters and customised offers to promote customer relationships.

• Use paid advertising: This can include sponsored campaigns on search engines and social media.

Make the shopping experience easier

Every obstacle you remove can boost the chances of customers completing purchases. Your site should be mobile-friendly and feature a fast, smooth checkout process that supports multiple payment methods. Research which payment methods are most popular in Italy and make sure to offer them. You should also ensure fast shipping.

Build trust

With online shopping, trust is important. Your returns policy should be clear and easy to find, which can reassure customers and promote purchases. To further strengthen your brand's trustworthiness, display genuine reviews, payment security icons and customer testimonials.

Analyse data and keep improving

To identify opportunities for improvement, you can track your online product sales and analyse metrics, such as traffic, conversion rates and cart abandonment rates. You can also test different versions of your product pages and use A/B testing with ad campaigns. Adjusting your strategies based on customer behaviour and market trends can help you stay competitive.

Foster customer loyalty

Attracting new customers is important, but keeping existing ones is just as important. Loyalty schemes, discounts and reliable customer support can turn a one-time purchase into a lasting relationship. Happy customers are more likely to buy again and recommend your brand, promoting business growth.

Administrative, tax and legal requirements for selling services online

Here's a step-by-step guide to start selling services online in Italy in compliance with the law:

• Select a business model
  Decide whether you'll be operating as a freelancer, sole trader or company. This will determine your administrative and tax obligations, as well as requirements regarding social security contributions and invoicing.

• Obtain a VAT number
  Anyone who sells services online regularly and continuously in Italy is required to obtain a VAT number. Find the ATECO code that matches your activity. This could include 62.09.09 (i.e. "Other services related to information technology [IT]") for IT-related services, such as software development or IT consulting. It could also include the codes under section 70 (i.e. "Business management and consulting activities") for business or professional consulting services. An accountant can help you select the most suitable ATECO code. At this point, you'll also need to choose either the ordinary tax regime or the flat-rate tax regime, which offers benefits to new businesses up to specific income thresholds.

• Register with the Business Register or a professional register
  Depending on the type of services you plan to sell, you might need to register with the Chamber of Commerce's Business Register. If the business operates as a company (e.g. a structured digital platform), registration is typically required. For strictly professional activities – such as consulting or translation – registration is usually not required. However, enrolment in a professional body is mandatory for some regulated professions, such as lawyers, architects or psychologists.

• Register with the INPS to pay social security contributions
  If you're not required to register with a professional register, you'll need to register with the INPS under the separate social security scheme. Commercial activities might require you to register with the INPS under the artisans and traders scheme.

• File an SCIA
  The SCIA must be filed with the One-Stop Business Advisory Centre (SUAP) of the relevant municipality. If your business doesn't include a location that's open to the public, a SCIA is typically not needed.

• Comply with invoicing and VAT regulations
  To sell services online, you must issue electronic invoices that comply with current regulations using the appropriate electronic invoicing software. VAT applies depending on the customer type and location. It is generally charged to B2C and B2B customers who are located in Italy. For B2C sales outside of Italy but within the EU, VAT is applied in the customer's country and the business can opt in to the OSS scheme. For B2B online sales within the EU, the reverse-charge mechanism applies. B2C and B2B sales outside the EU are typically not subject to VAT in Italy.

• Comply with GDPR requirements
  Because selling services online involves collecting and managing personal data, you'll need to comply with the GDPR, among other requirements. This includes providing privacy and cookie policies.

• Register with relevant organisations
  Some activities can require additional registrations. For example, for some digital services and payment processors, there are additional requirements, such as registering with regulated registries or reporting to the Italian Revenue Agency.

Overview of the tax and administrative requirements for selling products and services online in Italy

Key strategies for selling services online

Define your service and target audience

Clarify what service you will offer and determine your target customers. Make sure to address precise needs or solve specific problems and position your business relative to your competitors.

Build a solid online presence

Create a professional website enhanced for mobile devices that integrates SEO strategies. To foster trust, include clear service pages, a portfolio of completed projects and reviews from satisfied customers. Alternatively or alongside your website, you can also consider using marketplaces or freelance platforms.

Implement an effective digital marketing strategy

Boost your visibility and trustworthiness with a multi-channel approach based on SEO strategies, pay-per-click (PPC) ads, social media marketing and content marketing. Guides, webinars and blog posts can help you showcase your expertise, assert your legitimacy and educate potential customers. In addition, email marketing can foster a direct and personalised relationship with customers.

Make it easy to purchase the services

Ordering and paying for the services should be straightforward and secure. The checkout process should be simple and support several payment methods.

Build trust

Besides offering quality services online, it's important to provide clear terms of service and address complaints promptly. Prioritise customer support to boost your reputation and promote positive word of mouth.

Build customer loyalty over time

Enhance your relationship with customers with after-sale messages, personalised offers or loyalty schemes.

Analyse data and keep improving

Monitor traffic, conversion rates, customer feedback and campaign results to improve every step of the sales funnel. Adjusting your strategy based on collected data will help you anticipate market shifts and stay competitive.