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Who must file an Italian VAT return?
A foreign company must file Italian VAT returns when it is registered for VAT in Italy or carries out taxable domestic transactions there. Italy does not offer a local VAT registration threshold for a foreign business performing taxable operations in the country. To get registered, see our guide on VAT number in Italy.
Typical triggers include:
holding stock in Italy, including fulfilment or Amazon FBA flows;
importing goods into Italy and reselling them locally;
making domestic B2B or B2C supplies subject to Italian VAT;
exceeding the EU-wide EUR 10,000 B2C distance-sales threshold without using OSS, or choosing local registration because the flows require it.
LIPE, Modello IVA and F24: the three layers of Italian VAT compliance
Italian VAT compliance works in three separate layers: payment, quarterly reporting and annual declaration. Confusing these layers is the fastest way to create inconsistencies with the Agenzia delle Entrate.
| Layer | Italian term | Purpose | Usual timing |
| Periodic payment | Modello F24 | Pays VAT due for the month or quarter | Monthly on the 16th, or quarterly under specific conditions |
| Quarterly communication | LIPE - Comunicazione liquidazioni periodiche IVA | Reports periodic VAT liquidation data | Quarterly |
| Annual return | Modello IVA / Dichiarazione IVA | Consolidates the full VAT year | 1 February to 30 April of the following year |
The LIPE is not the annual VAT return. It is a periodic communication of VAT liquidation data. The Modello IVA, also called the Dichiarazione IVA, is the annual return filed electronically with the Agenzia delle Entrate.
Italian VAT return deadlines in 2026
The annual Italian VAT return for the 2025 tax year must be filed between 1 February and 30 April 2026. The annual VAT balance is normally paid by 16 March via Modello F24, using the payment channels accepted by the Agenzia delle Entrate.
| Obligation | Deadline |
| Annual Modello IVA / Dichiarazione IVA | 1 February-30 April |
| Annual VAT balance | 16 March |
| Monthly VAT payment | 16th of the following month |
| LIPE Q1 | end May; 1 June 2026 for Q1 2026 |
| LIPE Q2 | 30 September |
| LIPE Q3 | 30 November |
| LIPE Q4 | end February; 2 March 2026 for Q4 2025 |
If the periodic VAT amount payable does not exceed EUR 100, payment may generally be carried forward to the next period, subject to the applicable cut-off rules and in many cases no later than 16 December of the same year.
Monthly or quarterly VAT payments in Italy
Monthly VAT payment is the standard rhythm for many businesses, with payment due on the 16th of the following month. The payment is made electronically through Modello F24, with monthly tax codes commonly running from 6001 to 6012 depending on the reference month.
Quarterly payment can be available for businesses below the ordinary turnover thresholds:
EUR 500,000 for services and professional activities;
EUR 800,000 for other activities.
The quarterly regime is not a free cash-flow facility. Quarterly taxpayers generally pay the VAT due by the 16th of the second month following the quarter, with the August deadline affected by the summer postponement, and a 1% interest surcharge applies to quarterly payments.
SDI e-invoicing and esterometro reporting
Italian VAT figures must align with SDI e-invoicing and cross-border transaction reporting. The Sistema di Interscambio, or SDI, is the platform used for Italian electronic invoicing. For local Italian transactions within the e-invoicing scope, compliant XML transmission matters as much as the VAT return itself.
Cross-border transactions are handled through esterometro-type flows, usually via XML documents transmitted through SDI depending on the transaction. This mainly affects invoices issued to or received from non-Italian counterparties when the transaction is not already fully captured as a domestic SDI invoice.
Italian VAT rates to apply before filing
The standard Italian VAT rate is 22%. Reduced rates apply only when the goods or services fall within the relevant Italian categories.
| Rate | Typical scope |
| 22% | Standard rate for most goods and services |
| 10% | Certain food, hospitality, accommodation and passenger transport categories |
| 5% | Specific reduced-rate supplies, including selected food or social-policy categories |
| 4% | Super-reduced rate, including books, certain press products, some agricultural goods and qualifying medical supplies |
Before filing the Modello IVA, verify that invoices, SDI data and accounting entries use the same VAT treatment. A wrong rate can affect the LIPE, the annual return and the deductible VAT position.
Penalties, corrections and ravvedimento operoso
Late Italian VAT compliance should be assessed by type of violation and date, not by a single percentage. For late or omitted tax payments committed from 1 September 2024, the base administrative penalty under the reformed framework is generally 25% of the unpaid amount, with reductions possible for shorter delays and voluntary correction.
LIPE omissions, incomplete filings or inaccurate communications are generally sanctioned from EUR 500 to EUR 2,000, with potential reduction where the correction is made within the prescribed short window. Annual VAT return omissions or late filings must be analysed under the relevant rules, including fixed minimum penalties and the factual position of the taxpayer.
Fiscal representative for non-EU companies
Non-EU businesses usually need a fiscal representative in Italy unless direct identification is available under an applicable arrangement. EU businesses can generally use direct VAT identification, while non-EU businesses must check whether their country and transaction profile allow an alternative.
A fiscal representative is not just an address for correspondence. In practice, the representative secures registration, filings, F24 payment coordination, SDI setup and communication with the Agenzia delle Entrate.
Need support with an Italian VAT return?
Italian VAT return work is a data reconciliation exercise, not a form-filling task. We review your taxable flows, SDI and esterometro setup, LIPE history, F24 payments and annual Modello IVA position before filing.
If your company sells, imports or stores goods in Italy, secure the VAT calendar before the first missed deadline. See how importing goods in Italy works. For a complete overview, refer to our guide on VAT rules in Italy.
FAQ
Is the LIPE the same as the Italian annual VAT return?
No. The LIPE is a quarterly communication of periodic VAT liquidation data. The annual Italian VAT return is the Modello IVA, or Dichiarazione IVA, filed with the Agenzia delle Entrate between 1 February and 30 April.
When is the Italian annual VAT return due?
The annual Modello IVA is generally filed between 1 February and 30 April of the following year. For the 2025 tax year, the Modello IVA 2026 filing window runs from 1 February to 30 April 2026.
When do companies pay VAT in Italy?
Monthly taxpayers generally pay VAT by the 16th of the following month through Modello F24. Quarterly taxpayers pay under specific rules, generally with a 1% interest surcharge. The annual VAT balance is normally due by 16 March.
Can a foreign company use quarterly VAT payments in Italy?
Possibly, but not automatically. The ordinary turnover thresholds are EUR 500,000 for services and professional activities and EUR 800,000 for other activities. For non-resident companies, the option should be checked against the VAT registration route and the actual Italian flows.
What is the penalty for a late Italian VAT payment?
For late or omitted payments committed from 1 September 2024, the base administrative penalty is generally 25%, with reductions possible depending on timing and ravvedimento operoso. The exact amount depends on the violation date and correction route.
What are the penalties for incorrect or omitted LIPE communications?
Incorrect, incomplete or omitted LIPE communications are generally subject to penalties from EUR 500 to EUR 2,000. The penalty can be reduced in certain cases, especially where the communication is corrected quickly and before enforcement action.
Does SDI replace the Italian VAT return?
No. SDI is the Italian e-invoicing exchange system. It feeds the compliance trail, but companies still need correct periodic VAT payments, LIPE communications and the annual Modello IVA where they are registered or required to report Italian VAT.
Countries concerned
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