Setting up an ecommerce business in Italy means transforming a digital idea into an actual business. Before choosing the platform, payment methods, or marketing strategy, there is one important step: understanding value-added tax (VAT). This includes knowing when to register for VAT to sell online, how to do it correctly, and what costs are involved over time.

In this article, we cover VAT registration from the perspective of Italian ecommerce businesses that want to know how to operate legally. We explain when the law requires you to register for VAT and what basic information you need to know before you start. We also outline Classification of Economic Activity (ATECO) codes and explain which one to choose for an ecommerce business. Also, discover the steps to take to register for VAT to sell online and how much it costs. We provide a clear and practical overview for those who want to set up an ecommerce business and understand the initial steps.

What’s in this article?

• When is it necessary to register for VAT to sell online?
  
• Basic information for VAT registration
  
• What are ATECO codes, and which one should I choose for ecommerce?
  
• How to register for VAT to sell online
  
• How much does it cost to register for and maintain VAT for an ecommerce business?
  
• How Stripe Payments can help
  

When is it necessary to register for VAT to sell online?

Here’s a common initial question about online selling: Do I need to register for VAT to set up an ecommerce business? In most cases the answer is yes. In Italy, the answer depends on whether the ecommerce business conducts occasional business activities or business activities carried out on a regular and professional basis.

If you sell online in an organized, continuous manner for profit, you are required to register for VAT in Italy. This applies whether you sell through your own website, a marketplace, or social media. Even if sales start slowly, what matters is the structure of the business. This includes the presence of a product catalog, investment in advertising, order management, and shipments.

On the other hand, occasional business activities only require VAT registration in limited cases. “Occasional” activities include sporadic, unorganized sales without continuity. This situation is unlikely to apply to a genuine ecommerce business.

Furthermore, registering for VAT for ecommerce is both an obligation and a form of protection. It allows you to invoice correctly, deduct costs, and build a sustainable business over time.

What is the limit for online sales without VAT registration?

There is no legally established online sales limit that you must operate below without VAT registration. In Italy, what matters is how you conduct business, not the amount of sales. VAT registration becomes mandatory when online sales are regular, organized, and make a profit, even if turnover is low.

As mentioned, you can only sell without being registered for VAT in exceptional cases, when the business activity is one of the following:

• Occasional (i.e., not continuous)
  
• Unorganized (i.e., without an ecommerce site, catalog, structured marketing)
  
• Sporadic and not attributable to business activity
  

The summary below outlines when it is necessary to register for VAT:

What happens if I open an ecommerce business without registering for VAT?

If you set up an ecommerce business without registering for VAT when it is mandatory, you are conducting business illegally. In practical terms, you could experience the following:

• Tax penalties for illegal business practices
  
• Recovery of unpaid taxes (e.g., VAT, personal income tax, corporate income tax) with interest
  
• Administrative fines and investigations by the Italian Revenue Agency
  
• Problems with invoicing, payments, and marketplaces, which often require an active VAT registration number
  

Basic information for VAT registration

Before registering for VAT for an ecommerce business, it is important to clarify some basic information that directly affects management, taxation, and costs over time. When you register for VAT, you are assigned a VAT number that identifies those who carry out economic activities on a regular basis for tax purposes. It is issued by the Italian Revenue Agency when the business declares the start of its activities.

When you obtain a VAT number for ecommerce, you have to make two key choices: the legal form of the business and the tax regime.

Choose the legal form

The legal form defines how the business is structured and what liability you assume as an entrepreneur. The most common options for ecommerce businesses are as follows:

• Sole proprietorships: Sole proprietorships are the simplest and most common form in the early stages. They are suitable for those setting up ecommerce businesses without partners and with limited volumes. They involve unlimited liability on personal assets.
  
• Partnerships: Choosing partnerships is less common for ecommerce. This legal form can be used when the business is set up with partners and does not require a complex corporate structure.
  
• Corporations: This includes limited liability businesses (S.r.l.s). This legal form is often chosen when the ecommerce business has ambitious growth objectives. Corporations allow you to separate personal assets from business assets but involve higher costs and administrative obligations.
  

Select the tax regime

The tax regime determines tax calculations and accounting requirements. The main options include the following:

• Flat-rate: This regime provides simplified taxation and a substitute tax with reduced accounting requirements. The flat-rate tax regime is only available if you meet certain turnover limits and subjective requirements and is often the initial choice for those who register for VAT for ecommerce.
  
• Simplified: This is an intermediate regime that is applicable to sole proprietorships and partnerships that exceed the flat-rate limits but remain within certain revenue thresholds. It involves less complex accounting obligations than the ordinary regime, while maintaining the application of VAT.
  
• Ordinary: This tax regime involves more complex accounting management that includes VAT, analytical deduction of costs, and progressive taxation. It is mandatory when the business exceeds flat-rate limits or meets specific conditions.
  

These decisions have a direct impact on the costs of VAT registration for ecommerce, tax obligations, and sustainability of the project in the medium to long term. For this reason, it is advisable to evaluate them carefully before starting the business.

What are ATECO codes, and which one should I choose for ecommerce?

An often underestimated but important step is choosing the correct ATECO code. ATECO is a classification system that identifies the type of activity the business performs. When you register for VAT for ecommerce, the most commonly used code is 47.91.10: “Retail trade of all types of products via the Internet.” However, in some cases, it could be necessary to add additional codes. For instance, this occurs when the activity also includes the production of goods or wholesale sales.

Choosing the correct ATECO code helps with several factors:

• Determines the profitability coefficient in the flat-rate tax regime
  
• Affects social security obligations
  
• Affects access to concessions and incentives
  
• Defines the legal scope of the business
  

Choosing the wrong code can lead to tax or social security issues over time. For this reason, when registering for VAT for an ecommerce business, it is important to consult a trusted accountant to ensure you make the right choice.

How to register for VAT to sell online

From an operational perspective, registering for VAT to sell online is a relatively simple step. However, it must be done carefully because it determines the tax and administrative classification of the entire business. You must submit the application to register for VAT to the Italian Revenue Agency before beginning to make sales.

How to apply for VAT registration

Submit the application for registration via a specific declaration of the start of business activity. The correct form depends on the party setting up the ecommerce business:

• Form AA9/12: This form is used by sole proprietorships, self-employed individuals, and professionals.
  
• Form AA7/10: This form is reserved for companies and entities (e.g., S.r.l.s or other corporations).
  

You can submit the form in one of the following ways:

• Online through the Italian Revenue Agency’s electronic services
  
• Through an authorized intermediary, such as an accountant
  
• With the Single Business Communication (ComUnica), in some cases
  

What information must be included?

On the VAT registration form, you must provide some key information:

• Personal or company details
  
• Start date of the ecommerce business
  
• ATECO code identifying ecommerce type
  
• Tax regime (e.g., flat-rate, simplified, or ordinary)
  
• Tax domicile and place of business
  
• Option for VAT settlement, if applicable
  

Once you submit the form, VAT registration numbers are quickly assigned—often on the same day. From that moment on, you have the formal requirements to operate as an ecommerce business.

Next steps after VAT registration

Registering for VAT does not fulfill all the requirements necessary to sell online legally. Depending on the type of business and legal form, you will also need to complete the following steps after setting up your business:

• Certified Notification of Business Commencement (SCIA) submission: The SCIA must be submitted to the relevant municipality. It is generally required for ecommerce.
  
• Registration with the Business Register at the Chamber of Commerce: In Italy, registration with the Business Register is mandatory for commercial enterprises.
  
• Registration with the Italian National Social Security Institute (INPS): This must take place under the business’s tax regime or the self-employed tax regime, as applicable.
  
• Possible registration with the Italian National Institute for Insurance against Accidents at Work (INAIL): This is only necessary if you hire employees or contractors or if your business activities involve specific risks (e.g., internal warehousing, packaging, goods handling).
  
• VAT management: This includes periodic settlements, annual declarations, and application of VAT rules for online sales. This also includes VAT rules for sales abroad, unless you operate under the flat-rate tax regime that provides VAT exemption.
  
• E-invoicing: E-invoicing in Italy is mandatory in most cases. This includes issuance, digital storage, and transmission via the Exchange System.
  

How much does it cost to register for and maintain VAT for an ecommerce business?

Understanding the costs of VAT registration for ecommerce is important when assessing your business’s sustainability before you start. However, costs are not limited to formal registration with the Italian Revenue Agency. There are initial expenses, mandatory requirements, social security contributions, and recurring management costs. Below we provide an in-depth overview of the main costs.

Start-up costs

In general, registering for VAT is free. There are no government fees to pay, if you complete and submit the application to the Italian Revenue Agency yourself. However, in practice, you can incur other initial costs:

• Registration with the Chamber of Commerce: This is generally €88.50 in total, including stamp duty and administrative fees. You will also pay a Chamber of Commerce fee of approximately €53. This fee varies based on the type of business.
  
• Certified Notice of Business Start (SCIA): This can cost anywhere from €0–€200 or more, depending on the municipality in which you carry out your business.
  
• Certified email (PEC) address and digital signature: These are mandatory tools for tax and electronic communications, with annual costs starting at around €35 each.
  
• Accountant or intermediary for set up: If you rely on an accountant or other authorized intermediary (e.g., a Tax Assistance Center or employment consultant) to complete the paperwork, costs can vary between €150–€500.
  

Overall, the initial costs of registering for VAT online for ecommerce—including paperwork and consulting—can range from €100–€800. The amount depends on how much paperwork you do yourself and the level of professional assistance you choose.

Annual operating costs

Once you have registered for VAT, you will need to manage recurring expenses related to running your business. These also vary greatly depending on the business’s legal form and tax regime:

• Chamber of Commerce and annual obligations
  The annual Chamber of Commerce fee is approximately €50–€60 per year, payable to maintain registration with the Business Register.
  
• Accountant and bookkeeping
  If you adopt a simplified regime—such as the flat-rate regime—the costs of tax advice and bookkeeping with an accountant can vary between €300–€800 per year. If you opt for the ordinary regime, accounting and tax management are more complex and can require extended accounting services, with costs ranging from €1,000–€2,500 or more per year.
  
• Social security contributions
  For those registered with the INPS Traders’ Pension Fund—which is typical for many ecommerce businesses—contributions are due at a fixed minimum rate, regardless of income generated. For 2025, INPS set a minimum annual income of €18,555, on which they calculate mandatory contributions. The minimum annual contributions are approximately €4,500. If income exceeds the minimum, a contribution rate of 24.48% is applied to the excess amount. The rate and minimum threshold are not fixed over time. Instead, they are established each year by INPS, usually through a circular published in the early months of the year.
  
• Other requirements
  E-invoicing and digital storage of invoices are necessary tools for invoice management. Online platforms or accountant services can involve subscription fees or commissions. If you are not on the flat-rate tax regime, you will also have to manage periodic settlements, VAT returns, and payments, with costs determined by accounting complexity and professional support.
  

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