Urgent: Time is running out for Non-EU businesses to secure bank guarantee for VIES registration in Italy.

July 8, 2025 EU VAT Update
a close-up of a building

The deadline for having a bank guarantee in place for Non- EU businesses to secure their inclusion in the EU’s VAT Information Exchange System (VIES), was on the 13th June. However, a further 60-day grace period has been granted by the Tax Authority before measures are enforced.  Time is of the essence and businesses need to act fast to ensure that their VAT number is not removed and its intra EU trade is not impacted.

Summary of the new requirements

In April 2025, Italy introduced VAT compliance measures aimed at increasing transparency and reducing fraud in cross-border transactions. These changes significantly affect non-EU businesses registered or seeking registration for Italian VAT.

Key Changes at a Glance

  • Non-EU businesses must now provide a financial guarantee to register for or maintain their Italian VAT number in VIES. Being listed in VIES, is essential for conducting tax-exempt intra-EU transactions.
  • This guarantee, set at a minimum of €50,000, must be valid for at least three years.

Who Is Affected?

These rules apply to all non-EU businesses operating in Italy through a fiscal representative, whether newly registering or already listed in the VIES database. Existing registrants must also comply by submitting the required guarantees to avoid removal from the system.

Compliance Timeline

Businesses had 60 days from the announcement (April 2025) to meet the new requirements. An additional 60-day grace period has been granted to resolve any compliance issues before enforcement begins.

What’s the risk for businesses?

Failure to comply could lead to the cancellation of a company’s Italian VAT number and removal from the VIES database resulting in:

  • Businesses no longer being eligible for VAT exempt Intra EU transactions and as such charged VAT in the country of departure due to suppliers being unable to validate its customers VAT number. This could lead to significant costs for businesses as such VAT may not be recoverable.
  • Businesses having to reapply for VAT registration and VIES registration, which can be time-consuming and costly.
  • Penalties and interest being applied during the period of non-compliance.
  • Reputational damage with suppliers and Tax authorities

 Next Steps for Businesses

If your business is affected by these changes, it’s important to act quickly. Review your current VAT registration status, consult with your fiscal representative, and begin the process of securing the necessary guarantees.

Archives