Following Brexit, many UK businesses trading in Italy were concerned that they would be required to appoint an Italian fiscal representative to meet their VAT obligations. However, Italian tax authorities confirmed that UK-established businesses can continue to register for VAT directly in Italy without the mandatory appointment of a fiscal representative.

What changed?

When the UK left the European Union on 1 January 2021. It became a non-EU country for VAT purposes. Initially, there was uncertainty about whether UK businesses would lose the right to use direct VAT registration in Italy. It does not need to appoint a local fiscal representative.

The uncertainty was resolved when the Italian Revenue Agency issued Resolution No. 7/2021. The authority concluded that the VAT cooperation and mutual assistance provisions contained in the EU–UK Trade and Cooperation Agreement provide a sufficient legal basis for UK businesses to continue using direct VAT identification in Italy.

What this means for UK businesses?

UK companies carrying out taxable activities in Italy can:

• Register directly for Italian VAT.
• Continue using existing Italian VAT numbers obtained before Brexit.
• Choose whether to appoint a fiscal representative, rather than being required to do so.
• Manage Italian VAT obligations without the additional costs often associated with fiscal representation.

Benefits of direct VAT registration

Direct VAT registration offers several advantages:

• Lower compliance costs.
• Reduced administrative complexity.
• Greater control over VAT reporting and filings.
• No need to appoint a jointly liable third-party representative.

For many UK ecommerce sellers, importers, and businesses supplying goods or services in Italy. This has removed a significant post-Brexit compliance concern.

VAT refunds also simplified

In 2024, Italy and the UK further strengthened VAT cooperation through a reciprocity agreement covering VAT refunds. As a result, UK businesses seeking eligible Italian VAT refunds no longer need to appoint a local VAT representative solely for refund claims and can apply directly under the relevant refund procedures. The agreement applies retroactively from 1 January 2021.

However, taxable persons established in the UK can access the direct identification institution in order to fulfill the obligations and exercise the rights regarding VAT in Italy, as an alternative to the appointment of a tax representative pursuant to Article 17, paragraph 2, of the VAT decree. It is understood that UK operators who already have in Italy of a VAT tax representative or a VAT ID, nominated or issued prior to January 1, 2021, they can continue to use it for internal operations.

VAT purposes fulfillment

Direct Identification for VAT purposes is a fulfillment that foreign companies that operate in Italy towards private customers usually have to resort to (the case of e-commerce, Amazon, Ebay, etc.). A particular mention is made for companies that carry out indirect Ecommerce activities in Italy. It exceed the threshold for direct identification in our country. To adopt this system, it is necessary to identify directly (article 35-ter of Presidential Decree 633/1972). It present the model before carrying out any territorially relevant operation in Italy.

The Italian tax authorities have confirmed that UK businesses are not required to appoint an Italian fiscal representative. Because the UK is now outside the EU. Thanks to the VAT cooperation provisions within the EU–UK Trade and Cooperation Agreement. UK companies can continue to access direct VAT registration in Italy. It helps to reduce costs and simplify compliance for cross-border trade.