What is IVA (Italy)?
IVA (Imposta sul Valore Aggiunto) is Italian VAT. The ordinary rate is 22%, with reduced rates of 10%, 5% and 4%. It is paid through the modello F24.
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Current Rate (Monthly payment by the 16th of the following month, or quarterly for smaller businesses. Annual return filed between 1 February and 30 April.)
22% ordinary. Reduced rates of 10%, 5% and 4%.
Example
An invoice of €1,000 excluding IVA at 22% carries €220 of IVA, so the customer pays €1,220. At the 10% rate the IVA is €100, at 5% it is €50 and at 4% it is €40.
How IVA (Italy) works in Italy
Monthly filers pay by the 16th of the following month. Quarterly filers with turnover up to €500,000 for services or €800,000 for other activities pay by 16 May, 20 August and 16 November with a 1% interest surcharge. The fourth quarter is settled with the annual balance by 16 March. The acconto IVA is due by 27 December.
Which goods and services take which reduced rate is set by law. Finn does not guess the rate for a specific good or service. If it is unclear, Finn asks you or points to the Agenzia delle Entrate page, and states any 22% default as an assumption.
Forfettari charge no IVA. Every IVA holder must issue invoices electronically through SDI.
Related terms
The LIPE (Comunicazione delle Liquidazioni Periodiche IVA) is a quarterly communication of periodic IVA settlements sent to the Agenzia delle Entrate. It is due even when no IVA is payable.
The modello F24 is the payment form Italian taxpayers use to pay IRES, IRAP, IVA, withholding tax and INPS contributions to the Agenzia delle Entrate and INPS.
The regime forfetario is a flat-rate regime for Italian sole traders and professionals. It taxes a fixed share of revenue at a 15% substitute tax, or 5% for the first five years of a new activity, with no IVA charged and no IRAP.
The Sistema di Interscambio (SDI) is the Agenzia delle Entrate platform through which every Italian e-invoice travels. E-invoicing through SDI is mandatory for every partita IVA holder, including forfettari. An invoice legally exists only once it has been transmitted to SDI.
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