With corporate income tax set at 24 per cent, Italy has one of the lowest rates in Europe. The standard VAT rate is also a relatively low 22 per cent.
After COVID-19 reduced economic activity, the Italian government introduced new measures to support and relaunch the economy. One of the areas of focus is digitalization, innovation, and competitiveness. This investment is expected to reduce bureaucratic burdens and remove constraints that have slowed down growth in the past.
Setting Up To Launch
As you prepare to launch your brand in Italy, it’s important to understand the requirements for non-resident importers. To get started, you’ll need to obtain a VAT Registration and an EU EORI number. Additionally, you will be required to file paperwork with the local tax office on a regular basis, which in Italy, is typically done on a monthly and quarterly basis.
It’s also important to be aware that Italy has strict regulations in place for product compliance. This means that you will need to have authorized representation or responsible persons in place for food and contact materials, electronics, and toys.
Launching Your Brand In Italy
Even with all of the necessary registrations and compliance measures in place, it is important to note that an Importer of Record must act on your behalf when sending your goods into Italy. Additionally, VAT of 22% will be payable on the import value, which can be reclaimed. To avoid any issues, be sure to classify your goods correctly, as duties are non-refundable and dependent on the classification.
Shipping options to Italy and other countries within the EU are also available, so you can easily get your products to your customers. By understanding the requirements and regulations in place, you can ensure the success of your business as you expand your brand in Italy.