National annual threshold
In Italy, the national annual threshold is 85.000 euro.
In Italy, there are no sectorial thresholds.
The information on the national annual threshold is available on TEDB.
Domestic SME scheme
Simplified VAT obligations
A small enterprise (natural persons only) established in Italy that applies the SME scheme (domestic SME scheme)
is released from the following VAT obligations:
- to submit periodical VAT returns;
- to keep accounting records and VAT registers
- to issue full invoices
The SME can use simplified invoicing
Cross-border SME scheme
In Italy, the cross-border SME scheme applies in the following situation:
- The small enterprise (natural persons only) applies the SME scheme in other Member States than the Member State of establishment or
- The small enterprise (natural persons only) applies the SME scheme both in the Member State of establishment and in other Member State(s).
In Italy small enterprises (natural persons only) apply the cross-border SME scheme if their annual turnover in the entire European Union doesn’t exceed EUR 100,000 and if their annual turnover in Italy doesn’t exceed EUR 85,000.
Simplified VAT obligations
The VAT registration in each Member State where the small enterprise applies the SME scheme is replaced by a single prior notification to be submitted in the Member State of establishment.
The periodical VAT returns are replaced by a single quarterly report for all Member States to be submitted in the Member State of establishment.
Currency
The values of supplies of goods and services to indicate in the prior notification, in the update to a prior notification and in the quarterly reports must be in EUR.
Way of submission
The prior notification, the update to a prior notification and the quarterly reports should be submitted by electronic means on this page.
Additional simplified VAT obligations
In Italy, exempt small enterprises applying the cross-border SME scheme are released from the following VAT obligations:
- to submit periodical VAT returns
- to keep accounting records and VAT registers
- to issue full invoices
The SME can use simplified invoicing.
Loss of simplified VAT obligations
In Italy, non-compliant small enterprises are required:
- to VAT register
- to submit periodical VAT returns
Transitional period
Italy applies a transitional period.
The national annual threshold is 85.000 euro. If the SME’s annual threshold exceeds EUR 85.000 but not EUR 100.000, the taxable person will be excluded from the special scheme as of January the 1st of the following calendar year.
On the other hand, if the SME’s annual threshold exceeds EUR 100.000, the taxable person is excluded from the SME Scheme on that day.
The transitional period applicable can be found in the TEDB database.
Quarantine
Quarantine period in case of exclusion from the SME scheme
In Italy, in case of exclusion from the SME scheme, the small enterprise excluded from the SME scheme cannot benefit from this exemption during a quarantine period of 1 year.
Quarantine period in case of voluntary departure from the SME scheme
Small enterprises who decide to voluntarily leave the SME scheme in Italy are not able to benefit from that exemption during a quarantine period of 3 years.
Appeals
Domestic SME scheme
Appeals should be addressed to your Member State of establishment (MSEST).
Cross-border SME scheme
Member State of establishment (MSEST)
Appeals related to the following topics should be addressed to MSEST:
• Union annual turnover
• Prior notification, correction and update to a prior notification
• Quarterly reports and correction of a quarterly report
• Exclusion for exceeding the Union annual turnover
Member State of exemption (MSEXE)
Appeals related to the following topics should be addressed to MSEXE:
• National annual turnover
• Denial to access the cross-border SME scheme in MSEXE
• Loss of simplified VAT obligations in respect of MSEXE
• Exclusion for exceeding the national annual threshold/sectoral threshold in MSEXE
Calendar
Bank holidays 2025:
• 1stJanuary.
• 6 January.
• 20, 21, 25 April.
• 1st May.
• 2 June.
• 15 August.
• 1st November.
• 8 December.
• 25 December.
• 26 December.