- The Italian Ministry of Finance has issued new ministerial decrees on December 4 and 9, 2024, implementing obligations from legislative decree No. 13 of February 12, 2024, related to fiscal representation for foreign entities not established for VAT purposes in Italy.
- Fiscal representatives must meet personal integrity requirements and submit a notarial deed to the competent Provincial Directorate of the Italian tax authorities, along with providing a guarantee if representing multiple entities, ensuring compliance with documentation for VAT registration in the VIES database.
- Failure to comply with the new guarantee obligations can result in administrative penalties ranging from €3,000 to €50,000, emphasizing the importance of adherence to the updated regulations.
- The guarantee must be submitted by the fiscal representative and can take the form of government bonds, bank guarantees, or insurance policies, with varying minimum values based on the number of entities represented and a required duration of at least 48 months.
- Both the Italian tax authorities and financial police will conduct risk analyses to identify fiscal representatives of non-EU entities who may not fulfill their obligations, and existing representatives and non-EU entities must submit necessary declarations and guarantees within 60 days of the publication of the operational measures to avoid penalties.
Source PwC
