Italy Introduces Cross-Border VAT Exemption for Small Businesses

On December 30, 2024, the Italian Revenue Agency issued a new Provision aligning Italy’s VAT exemption regime with the EU’s cross-border SME scheme. This initiative aims to ease administrative requirements for small businesses and promote cross-border trade within the European Union.
Eligibility and Notification Process
To qualify for the VAT exemption:
- Businesses must be established in the EU and have an annual turnover below €100,000 across all EU territories.
- Their turnover in each Member State where they seek the exemption must not exceed the national or sector-specific threshold (Italy’s threshold is currently €85,000).
Starting January 1, 2025, businesses can submit the required notification through the Revenue Agency’s online portal to obtain an EX identification number. Once issued, this number allows businesses to apply the exemption.
There’s more you should know about e-invoicing in Italy – learn more about the new and upcoming regulations.