Italy confirms bank guarantee requirements for VAT registered non-EU companies performing intra-EU transactions

31 January 2025

Italy recently published new regulations affecting non-EU resident companies engaging in intra-EU trade of goods to and from Italy.

Businesses involved in intra-EU activities, including the movement, purchase and sale of taxable goods are required to register in the VAT Information Exchange System (VIES). This system is a database of all EU VAT numbers that are authorised to undertake intra-EU activities and enables users to obtain rapid confirmation of companies’ VAT numbers. It also allows EU VAT authorities to monitor and control the flow of intra-Community trade to detect irregularities and VAT fraud.

Due to these new regulations, non-EU entities performing intra-EU transactions will now have to issue a financial guarantee of at least €50,000 to the Italian tax authorities to register for the VIES. Companies already registered will also have to provide a guarantee and will receive a written request from the Italian tax authorities after the regulations are implemented.

This guarantee must be valid for at least 36 months and can be provided in the form of state securities, bank guarantees, or surety bonds. The Italian tax authorities also confirmed that non-compliance with the new regulations will result in the automatic closure of VAT numbers or cancellation of VIES registration. Entities will have a 60-day grace period after this is implemented to rectify any issues before penalties are enforced.

We will shortly be reaching out to all clients effected by these new regulations to provide guidance on what this means to them going forward.