The standard rate in Italy is 22%. Some goods and services carry reduced or zero rates and others are exempt. The difference matters: zero-rated sales still let you reclaim the tax on your purchases, exempt sales do not.
Who must register
There is no small-business registration threshold: a habitual activity needs a Partita IVA from the first euro. The 85,000 EUR figure is the ceiling for the regime forfettario, which charges no VAT and pays a substitute tax of 5% or 15% instead; the 2026 budget kept it at 85,000 EUR. Pass 100,000 EUR in receipts and the regime ends from that transaction.
Filing and paying
Registered and filed with Agenzia delle Entrate.
Ordinary regime: pay monthly by the 16th, or quarterly by the 16th of the second month after the quarter with a 1% surcharge. Quarterly LIPE communications, and the annual Dichiarazione IVA between 1 February and 30 April. Forfettari file none of these.
Penalties for getting it wrong
Under D.Lgs. 87/2024, unpaid VAT carries 25% of the tax, or 12.5% if paid within 90 days. An omitted return is 120% of the tax due, minimum 250 EUR.
Written from published tax-authority guidance and reviewed on 2026-10-11. Everything here is indicative rather than a ruling on your circumstances, and rules change. Confirm anything you rely on with Agenzia delle Entrate before acting on it, and tell us if you find something out of date so we can correct it.
This guide explains the rules in general terms and is not tax advice for your circumstances. Confirm your position with a qualified adviser or with Agenzia delle Entrate.