The VAT tax representative (Article 17 of Presidential Decree 633/72) must be appointed by means of a public deed, a registered private deed or a letter noted in a special register (form VI) at the Inland Revenue Office competent in relation to the tax domicile of the representative or represented. (The appointment takes place according to the forms established by Article 1, paragraph 4 of Presidential Decree 441/1997, to overcome the presumption of assignment of assets – [formerly Article 53 of Presidential Decree 633/72]).
Alternatively, the appointment may also be authenticated by a notary of a foreign State belonging to the AIA Convention of 5 October 1961 (ratified in Italy by Law 20.11.1966, No. 1253) and bearing the “Apostille” stamp or legalized by the consul general of Italy to the foreign state. The Apostille certifies that the Notary or the Governmental authority that issued the document is actually authorized to do so. The apostle replaces legalization.
The subject appointed representative must open the VAT position (declaration of commencement of activities) for the principal. With the opening of the VAT position, the foreign person, through his representative, will be subject to all the obligations and rights provided for by the national VAT legislation. The VAT, to be paid not for single transaction but with ordinary deadlines (monthly or quarterly), will be determined according to the general rules net of deductible tax on purchases.
The appointment must be prior to the execution of the operation that requires its appointment and must be communicated to the other party.
The Italian operator who already owns a VAT number, if he becomes a tax representative, will have a further VAT number. Each VAT number will be managed autonomously with separate accounting ..
A tax representative can refer to several subjects and therefore can be holder of more ‘VAT numbers, while a foreign operator can not have more than one tax representative.
It is possible to appoint the representative also for a single transaction and not for all transactions carried out by the foreign person in Italy.
The tax representative can be a natural person or a legal person (resident or established in Italy)
The appointment must be brought to the attention of the suppliers prior to the first transaction. In fact, the invoices issued to the tax representative must be co-listed with the representative and the foreign person.
Opening of VAT number
The tax representative must present the declaration of commencement of activity. If the representative already has a VAT number, he will receive an additional VAT number. The two or more VAT lots must be managed separately with separate accounts.
Invoicing of supplies and services
The tax representative must issue an invoice without applying VAT when he performs services or disposals of resident VAT. Correspondingly, the transferees or clients subject to VAT, residing in the territory of the State, who purchase goods or services from tax representatives of non-residents in Italy, are obliged to issue self-bill or supplement the invoice received with VAT (if the operation is territorially relevant in Italy) (Article 17, paragraph 2, Presidential Decree 633/72).
The obligation to issue an invoice without VAT has been introduced since 1 January 2010.
The invoices issued by the tax representative must contain both the data of the representative and the data of the represented foreign person
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