Effective 10 April 2025, the Italian Tax Authority has introduced a mandatory €50,000 financial guarantee for non-EU businesses registering for Italian VAT and VIES through a fiscal representative.
⚠️ Who’s Affected?
Effective 10 April 2025, the Italian Tax Authority has introduced a new requirement for non-EU businesses (excluding those based in the UK, Norway, Iceland, and Liechtenstein) registering for Italian VAT and VIES through a fiscal representative. These businesses must now provide a €50,000 financial guarantee to the Italian Revenue Agency.
This rule applies to:
- New VAT applicants
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Existing non-EU/EEA/UK VAT-registered companies, who must comply by 14 June 2025
💶 What Is the €50,000 Guarantee?
The guarantee is a mandatory financial security to ensure compliance with Italian VAT obligations. It must:
- Be exactly €50,000
- Be valid for 36 months
- The official template (downloadable at the bottom of this article) provided by the Italian Revenue Agency must be used for the bank guarantee.
Please note that tax authority will accept only bank guarantee letters drafted as the official template published on their website. Any modifications of the letter will be rejected from the authority. If the letter matches the template, but is presented in different language, than the tax authority will request official translation with Apostille.
✅ Accepted Guarantee Formats
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Type
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Description
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🏦 Bank Guarantee
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A letter issued by your bank covering the full amount by an approved institute* This must follow the Allegato 2 format, linked at the bottom of the article. This should be completed in Italian if possible or if completed in another language, must be translated back to Italian and apostilled. AVASK are unable to provide translations at this time. *Foreign banks can issue guarantees if authorized by the Bank of Italy: List here |
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🛡️ Insurance Bond
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Bonds must be issued by an insurer following the official Italian format by a recognised insurance provider* IVASS List here |
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📈 Direct Deposit
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€50,000 invested in Italian government bonds
This must follow the Allegato 2 format, linked at the bottom of the article.
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What Does This Mean for You?
1. New Non-EU businesses enquiring to Sell in Italy
- You must provide the €50,000 guarantee at the time of VAT/VIES registration.
- Without it, your application cannot proceed.
2. Non-EU businesses currently in the process of VAT Registration
- If you have not yet received your Italian VAT number, your application is on hold until the guarantee is submitted.
3. Existing businesses with a live VAT Number in Italy
- You must submit the €50,000 guarantee by 14 June 2025.
- The Italian Tax Authority will verify guarantees within 30–60 days.
- If not submitted on time:
- A warning will be issued
- You’ll have 30 days to respond, with a maximum 90-day grace period
- After 90 days, your VAT number will be cancelled, VIES registration revoked, and stock must be removed from Italy
- Re-registration will be required, including a new guarantee
🧠 Additional Tips
- The €50,000 amount is fixed by law and does not vary based on company size, sales volume, or marketplace usage.
- If your bank requires a frozen deposit:
- Consider using Italian government bonds
- Or ask your insurer for a flexible bond
📬 Where to Send the Guarantee
🔍 What Is VIES and Why It Matters?
🛡️ Why This Rule Was Introduced
👥 Impact on Fiscal Representatives
Fiscal representatives must now hold a €2,000,000 guarantee to represent non-EU clients trading in Italy.
At AVASK, we are pleased to confirm that the fiscal representatives for agents have been approved and have successfully completed. This ensures that our clients can continue trading seamlessly after providing their €50,000 guarantee. We are a trusted partner, recognised by the Italian Tax Authority (ITA), and fully compliant with the updated regulations.
✅ What Should You Do Now?
- Start preparing your €50,000 guarantee immediately
- Work with your bank or insurer to ensure the documentation meets Italian requirements
- Submit the guarantee with your VAT registration or by 14 June 2025 if already registered
Can any bank or insurer issue the guarantee?
Yes, it does not have to be Italian, but:
- The institution must follow the exact required wording and format.
- If the tax office does not recognize the issuer, it may investigate and reject the guarantee.:
- Foreign banks can issue guarantees if authorized by the Bank of Italy
- Insurance companies can issue guarantees if approved by IVASS
- The original must be submitted to the Italian tax office.
- The tax authority will verify the guarantee within 30–60 days.
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