Italy VAT Calculator (IVA) 2026 — Add or Remove VAT Instantly

In cross-border B2B sales between Italy and other EU countries, the Italian seller does not charge IVA. The buyer self-assesses the tax. Reverse charge is also mandatory domestically for sectors like cleaning services, construction, and electronics.

Italy's Sistema di Interscambio (SDI) is the government-run platform through which all B2B and B2C domestic invoices must be transmitted in a structured XML format. Invoices not routed through SDI are considered legally non-existent.

Esente operations (like medical services) do not carry IVA, and the business cannot deduct input tax. Non imponibile operations (like exports or intra-EU sales) are in-scope but taxed at 0%, allowing full deduction of input IVA.

According to Italian tax code (D.P.R. 633/72), the IVA amount must be rounded to the nearest cent. Half-cents (0.005) must be rounded up to the nearest cent (0.01).

All invoices and VAT registers must be preserved for at least 10 years under the civil code, and must be archived electronically in a certified compliant format (conservazione sostitutiva).

Split payment is a mechanism where public administrations and publicly listed companies pay the net invoice amount to the supplier, but pay the IVA portion directly to the state treasury, preventing VAT evasion.

Small businesses and autónomos with annual revenues up to €85,000 can register for the Regime Forfettario. They pay a flat tax (5% or 15%) and are exempt from charging or declaring IVA, but cannot reclaim input IVA.

For electronic invoicing via SDI, the Codice Destinatario (recipient code) or PEC email is required to route the invoice to the buyer's tax drawer. If missing, the invoice is still issued but must be fetched from the tax portal.

Failing to submit or submitting incorrect IVA returns in Italy carries steep penalties, starting from 120% to 240% of the tax due. Late payments incur a 15% penalty if paid within 90 days, rising to 30% thereafter.

Import IVA is calculated on the customs value of the goods (declared price + freight + insurance) plus any import customs duties. It must be paid directly at customs unless the importer uses a VAT warehouse.

Italy's standard IVA (Imposta sul Valore Aggiunto) rate is 22%. Italy has three reduced rates: 10% (intermediate), 5% (reduced), and 4% (super-reduced) for essential goods and services.

Divide the IVA-inclusive price by 1.22 for the standard rate. For example, €122 ÷ 1.22 = €100 imponibile, with €22 being IVA.

Italy pioneered mandatory electronic invoicing (fatturazione elettronica) in the EU. Since 2019, all domestic B2B and B2C invoices must be transmitted through the SDI (Sistema di Interscambio) platform in XML format. From 2024, this extends to most forfettari (flat-rate scheme taxpayers) as well.

The regime forfettario is a simplified tax scheme for small businesses and freelancers with annual revenue up to €85,000. Participants pay a flat 15% substitute tax (5% for new businesses for the first 5 years) and do not charge IVA on their invoices.

Yes, but at reduced rates. Basic staples (bread, milk, eggs, olive oil) are taxed at 4%. Some processed food products carry the 10% rate. Fresh fruit and vegetables are typically taxed at 4% or 5% depending on the specific item.

First-home purchases from developers are subject to 4% IVA. Second homes from developers incur 10% IVA. Private resale transactions are subject to registration tax instead. Luxury properties (catasto category A/1, A/8, A/9) face the full 22% rate even on first-home purchases.