Italy’s New VAT Guarantee Requirement for Non-EU Businesses

Effective April 15, 2025, Italy requires non-EU and non-EEA businesses registered for VAT or listed in the VIES database to provide a €50,000 financial guarantee to enhance VAT compliance and prevent fraud. Those already listed must comply by June 13, 2025, or risk losing their VIES registration and the ability to trade across EU borders.

 

As of 15 April 2025, Italy now requires non-EU and non-EEA businesses trading within the EU to provide a financial guarantee if they are registering for VAT or want to remain listed in the VIES (VAT Information Exchange System) database.

Any business located outside the EU/EEA that is registered for VAT in Italy or applying to be, especially if listed in the VIES database, is impacted by this new requirement.

The goal of this measure is to reduce VAT fraud and improve tax compliance, as outlined in Article 35, Paragraph 7-quater of Italian law DPR 633/1972.

A minimum financial guarantee of €50,000 must be provided through one of the following:

-          Italian government bonds or similar financial instruments,

-          A bank guarantee,

-          An insurance surety bond.

Businesses already listed in VIES must submit the guarantee by 13 June 2025. Failure to do so will result in removal from the VIES database.

Losing VIES registration means losing the ability to trade freely across EU borders, a critical issue for cross-border businesses.

Begin the process of securing the required financial guarantee immediately. Delaying could risk missing the deadline, as processing times may vary.