Italy has always presented a strange proposition for ecommerce sellers. On the one hand, it is no secret that the country lags behind some of the bigger ecommerce markets in Europe such as the UK and France. However, it is one of the fastest growing ecommerce markets in the world, with an average growth of 10-20% year-on-year for the last 5 years. With ecommerce in Italy now comfortably worth more than €30 billion, it might be time for you to expand your business to the southern European country. Here’s our guide to Italian ecommerce and how to register for VAT in Italy.
Italy One Of The Fastest Growing Markets In Europe
As stated in the introduction, Italy is one of the fastest growing markets in Europe, along with the likes of Poland, Denmark and Norway. Whilst these other countries also present good opportunities, ecommerce sellers who are looking for opportunities in markets that are about to grow quickly should look no further than Italy.
This is due to the rapid digitalization of the country, coupled with a young population who are increasingly interested in buying their products from abroad. On top of this, the major online marketplaces such as Amazon and Ebay already have a strong presence in Italy, meaning that sellers who use these platforms can expand to the country easily.
What You Should Be Aware Of Before Registering For VAT In Italy
There are a few things to consider before expanding your business to Italy. One is the lack of payment options. Unlike many of the other major ecommerce markets in Europe, Italy is not blessed with many options when it comes to payment options. PayPal is active in Italy, which will come as a relief to many sellers, but UK sellers should be aware that PayPal’s fees are going up for UK-EU transactions as a result of Brexit.
Another consideration is the difficulties in delivering to the remote southern regions of Italy. Whilst delivery is still reasonably simple to these regions, extremely fast delivery may be difficult. This is probably way many Italians seem to distrust logistic providers. This is why it is important that you ensure that your supply chain in Italy will be efficient before committing to selling there.
Finally, don’t forget to ensure that the platform you are selling via uses Italian as its language. Italians much prefer to buy from sellers using there own language, rather than English or Spanish.
The VAT Registration Process In Italy
There is no Italian VAT registration threshold for non-resident traders. So If you wish to sell in Italy you will have to register for VAT. Like many EU countries, you will be required to have a fiscal representative in order to register for VAT in Italy if you are a resident of a non-EU state. This is recommended in Italy anyway, as returns can sometime be complicated if not submitted in Italy. If you require this service, please be aware that we at J&P can act as a fiscal representative in Italy and we are very experienced in dealing with the Italian tax authorities.
The usual information for registering for VAT in a country will be required, such as a letter of authority for the tax representative and the latest audited company accounts. Tax registration is relatively quick in Italy, with the process typically taking a total of 3-6 weeks.
So What Are You Waiting For?
Hopefully this article has provided you with all the information you need to expand your business into Italy. Evidently, VAT registration is an unavoidable step when it comes to expanding your business. Whilst it can be a stressful registration process, we are here to complete the process for you.
Our long history of working with ecommerce sellers, especially those who use Amazon and eBay, means we can guide you through every step of the registration process – so please do not hesitate to send us an e-mail at enquiries@jpaccountant.com or contact us through social media to receive a quote today. In addition to Italy, we would be more than happy to help you register for UK & EU VAT and file your UK & EU VAT returns, and help you comply with VAT in case your account faces any issues.
