Italy's New VAT Guarantee Requirement for Non-EU Businesses
Overview
Starting April 15th 2025, the Italian Tax Authority (Agenzia delle Entrate) requires non-EU businesses using a fiscal representative to provide a €50,000 financial guarantee if they want to be or stay listed in the VIES system (used for intra-EU trade). This new rule is part of Italy’s effort to improve VAT compliance and reduce fraud. If you are a non-EU seller with stock in Italy or making EU-wide sales through Italy, this rule likely affects you. This article will explain who is affected, what the guarantee entails, the deadlines and penalties, and how sellers can comply or consider alternatives.
Key Points at a Glance
- Non-EU sellers must now provide a €50,000 guarantee to keep or get VIES registration in Italy.
- Only sellers using a fiscal representative (not direct registration) are affected.
- Required for both new and existing VIES registrations
- The guarantee must be valid for at least 36 months and follow specific formats.
- Deadline for existing VAT-registered sellers is June 13, 2025 with an additional 60 days grace period.
- Failure to comply = loss of VIES access and potentially your Italian VAT number.
Who Is Affected by the New Rule?
You need to provide the €50,000 guarantee if:
- Your business is not established in the EU, or EEA (Iceland, Lichtenstein and Norway)
- You are using a fiscal representative to handle your Italian VAT registration, and
- You are (or plan to be) listed in the VIES system to make intra-EU B2B transactions.
- If you only sell within Italy and don’t use VIES, this rule doesn’t apply.
Guarantee Requirements
Amount: €50,000
Validity: At least 36 months
Accepted formats:
- Bank guarantee
- Insurance surety bond
- Deposit in Italian government bonds
*The bank guarantee format must follow Italian tax authority’s official template.
Important Deadlines
April 14, 2025 – Agenzia Entrate provision issued – new rules take effect
June 13, 2025 – Last day for existing non-EU businesses to submit the €50,000 guarantee
June 16, 2025 – Fiscal representatives must submit their own compliance declaration
New VAT registrations must include guarantee from day one; ongoing requirement for non-EU sellers and their fiscal reps.
Missing the deadline? You get a grace period (up to 60 days) before your VIES registration is canceled.
What Happens If You Don’t Comply?
Choosing to ignore this requirement could seriously impact your business. Here’s what’s at stake:
VIES removal and Italian VAT-number cancellation.
After 60 days without the guarantee, the Revenue Agency drops your VAT ID from VIES; if your fiscal representative still fails to comply, the VAT number itself can be cancelled.
Marketplace and logistics blocks.
Platforms and shippers that check VIES (Amazon, eBay, FBA, customs) flag an “invalid” ID, freezing listings, payouts or shipments.
Face audits, penalties enaltiesnforcement from The Italian tax authority
The fiscal representative is fined €3 000–€50 000, and any zero-rated EU sales can be re-taxed at 22 % Italian VAT plus 30 %–60 % penalties and interest.
What Now?
1. Pay the Guarantee
The most straightforward solution, particularly suitable for sellers who:
→ Store inventory in Italy
→ Use Amazon Prime or Pan-EU FBA
→ Rely on intra-EU B2B or B2C transactions through VIES
2. Deregister Italian VAT
Remove your stock from Italy and stop using local fulfilment.
→ Avoids the guarantee
→ You can switch to OSS if eligible
3. Set Up an EU Company
Register a company in the EU to bypass the rule.
→ No fiscal rep or guarantee needed
→ Full access to VIES and B2B trade
This new policy places significant compliance obligations on non-EU e-commerce sellers operating in Italy, it’s essential to act promptly to avoid disruptions to your EU operations. At VATAi, we specialize in simplifying complex VAT requirements for e-commerce businesses. Our team is actively reviewing the new regulations to develop the most effective support solutions for our clients. We’ll be reaching out directly to all affected clients with tailored guidance and next steps as soon as possible.
✔️ Fully compliant fiscal representatives
✔️ Support for the new guaratee process to ensure your business stay compliant
✔️ Proactive deadline tracking & ongoing compliance monitoring
✔️ Affordable EU VAT compliance with no hidden costs
Need Help with VAT Compliance?
Book a free call with VATAi today to find tailored solutions for your e-commerce business
