What are the Italian IVA rates and when is IVA paid?

## IVA rates

The ordinary rate is 22%. Reduced rates are 10%, 5% and 4%. The law sets which goods and services take which rate. Finn does not guess a reduced rate. If it is unclear, Finn asks you or points to the Agenzia delle Entrate page, and states any 22% default as an assumption.

## When IVA is paid

• **Monthly filers:** by the 16th of the following month.
• **Quarterly filers** (turnover up to €500,000 for services or €800,000 for other activities): by 16 May, 20 August and 16 November, with a 1% interest surcharge.
• **Fourth quarter:** settled with the annual balance by 16 March.
• **Acconto IVA:** due by 27 December.

Payments go through modello F24.

## Reporting

• **LIPE:** the quarterly communication of periodic settlements, on 31 May, 30 September, 30 November and 28 February. It is due even when no IVA is payable.
• **Annual return:** filed between 1 February and 30 April of the following year.

## A worked example

An invoice of €1,000 excluding IVA at 22% carries €220 of IVA. At 10% it is €100, at 5% it is €50 and at 4% it is €40.

## Forfettari

Forfettari charge no IVA. Every partita IVA holder must still issue invoices through SDI.

## How AccountsOS helps

Finn works out the IVA position from your books and shows the workings. The company or its commercialista sends the LIPE and the return and pays by F24. AccountsOS does not submit to the Agenzia delle Entrate.