What does the tax representation service in Italy entail?
By appointing a tax representative in Italy, Swiss companies obtain a VAT number and can operate as if they were Italian companies with respect to this tax, therefore recovering the VAT paid to domestic suppliers.
The tax representative in Italy is responsible for fulfilling all the company’s obligations under VAT law, i.e. invoicing, registration, settlement and returns.
Our tax representation service in Italy is intended for Swiss companies that do not qualify for VAT refunds in Italy under Article 38-ter of Presidential Decree 633/72.
By appointing a tax representative in Italy, a foreign entity becomes a fully-fledged VAT taxpayer. Therefore, it is then required, through its tax (or VAT) representative, to fulfil all obligations under the relevant Italian legislation.
In brief, the tax representation service in Italy entails:
- an initial consultation to verify whether the feasibility requirements are met;
- appointing the VAT representative or tax representative (accounting firm);
- applying for a VAT number;
- issuing a bank and/or insurance surety to the VAT representative as a guarantee covering the joint and several liability of the tax representative in Italy. The amount of the surety must be equal to the VAT on the transaction;
- recording purchase and sales invoices in the tax ledgers;
- periodic VAT settlements;
- annual VAT communication;
- annual VAT return.