Article sponsored by Cassons
The general EU VAT rules currently apply when trading with Italy. While the UK is still a member of the EU, any goods that you sell from the UK to consumers in Italy should include UK VAT until the “distance selling” threshold is breached, after which you will be required to register and account for Italian VAT. The distance selling threshold in Italy is currently €35,000 for each calendar year.
Registering for VAT in another country can be a laborious process, and Italy is no exception. In fact Italy is generally regarded as one of the more difficult places for a non-resident to register for VAT in the EU.
The rates of VAT are higher in Italy than they are in the UK (the top rate being 22 per cent compared with 20 per cent). This means that if you are distance selling above the threshold, you will need to ensure your products are priced accordingly.Subscribe here for our regular 'International Trade' feature.
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