Negosentro.com | Selling To Italians: Useful Guidance | Before selling your products or services to Italy, please get informed about IVA tax. Even if you are an external company selling to Italy you must comply with the local legislation. IVA tax is the sales tax in Italy. It comprises 22% of any taxable sales or any raw material. Businesses are responsible for collecting this value and add tax on behalf of the government. It should be paid by the business quarterly or monthly without due or constrainment, and file the quarterly VAT return.
Value-added Tax (VAT) is a goods and services tax, and this type of charge is accessed incrementally. It is imposed based on prices of goods or services at each stage of production, distribution, or sale.
This VAT tax has increased over the past few years, and the government is still trying to increase it by 23% this year. However it is not sure yet and it keeps getting postponed. There have been evident variations in the sales tax since 2000 and has risen massively in 2013-2014. Before selling in Italy or doing trade, check about the latest sales tax as it has been fluctuating over the years.
For more information about how to deal with this tax if you are a company, check this detailed article about IVA tax in Italy.
Essential tips for tourists visiting Italy
If anyone of you is planning to visit Italy anytime soon, here are some essential and useful tips that will help you when buying or selling something in Italy.
If you purchase any item from Italy for value over 175€ from a specific shop, there is a chance that you might get a VAT refund when you get back to your country. Save the receipt of the item you bought and airplane tickets to show them. Carry the item yourself at VAT refund station, fill an official form.
If you do everything correctly, you will receive a custom stamp, and you will get your money refunded. Plus, take care of your country’s currency too. When it converted into your country’s currency, it is still above 175€.
If you visit Italy as tourists, do keep the receipt of anything you buy or eat with you for some time. The finance police have permission from the authority to stop you and excellent both you and shop-owner if you don’t have the receipt.
VAT can vary according to product or service
VAT rates vary depending from the goods and services you are buying or selling. They have different VAT rates for residency in Italy, depending on the kind of products.
- The standard rate is 22%, and it is applied to most goods and services.
- Then, there is a reduction of 10% of VAT rate when it comes to listed uses and listed drugs from real estate maintenance services and electric power supplies.
- And further 4% is reduced to certain foods, drinks, and agricultural products.
- The VAT is exempted from educational and insurance services, specific financial services, or leasing of particular immovable property. There are no VAT rates on such supplies of goods and services.
Direct selling in Italy
Italy is still famous and is highly ranked for direct selling in Europe and globally. It is a popular purchasing channel for consumers, and the system of its tax attracts more consumers. When it is talked about the profession of direct selling, there is no better platform than Italy in the whole world. Many Italian women are adopting direct trading strategies in Italy, which is the primary factor for increasing employment opportunities.
Mono-brand stores’ competition in Italy is increasing day by day because of the direct selling of beauty and cosmetic items directly. The online stores are offering high prices for useable cosmetics, that is why people are turning towards using the opportunity of direct selling. The impacts of Lower current retail is quite visible on direct marketing. Imagine selling products to the people out there on the roads and cafes; it is quite impressive.
Direct selling gives favorable employment opportunities for Italian men and women, especially for women. The method of direct sale in Italy is now introduced in the superstores too. Many direct selling companies are also providing their services to several users there. So you can also adopt direct selling to strengthen your financial state and benefit others.