Registration with VIES (VAT Information Exchange System), or the Register of Intra-Community Operators, is a fundamental requirement for Italian companies and professionals who intend to carry out commercial operations (supplies of goods or services) with economic operators (other VAT registered entities) residing in other EU Member States.

What is VIES for?

VIES is a computerized archive managed by the European Commission in collaboration with the tax administrations of the Member States. Its main function is to allow the verification of the validity of VAT numbers of economic operators within the EU. This verification is crucial because, for intra-community B2B (Business to Business) operations, the regime of non-taxability of VAT in the country of origin (e.g., Italy) applies, and taxation occurs in the country of destination (through the reverse charge mechanism).

If your EU client is registered with VIES and their VAT number is valid, you can issue an invoice without applying Italian VAT. Without VIES registration, the invoice would be issued with Italian VAT, as for a domestic operation, even if the client is foreign.

Who is obliged to register with VIES?

All VAT taxable persons (VAT number holders) who intend to carry out the following are obliged to register with VIES:

• Intra-community supplies of goods: sales of goods to a VAT number in other EU Member States.
• Intra-community acquisitions of goods: purchases of goods from a VAT number in other EU Member States.
• Intra-community supplies of services: supplies of services to a VAT number in other EU Member States.
• Intra-community acquisitions of services: acquisitions of services from a VAT number in other EU Member States.

In summary, whenever your activity, whether buying or selling, involves another entity with a VAT number in an EU country, it is necessary to be registered with VIES.

How is VIES registration carried out?

VIES registration can be done in two main ways:

1. Concurrently with opening your VAT number:

• When you open your VAT number via Form AA7 (for entities other than individuals, e.g., companies) or Form AA9 (for individuals and freelancers), you must tick the corresponding box in section 1, under “Intra-community Operations”. This way, your VAT number will be immediately enabled for VIES.

2. Later (if your VAT number is already active):

• If you already have a VAT number but it was not enabled for intra-community operations, you can request enablement at any time.
• The request is made electronically, by accessing the online services of the Revenue Agency (via SPID, CNS, or CIE).
• You will need to access the reserved area, select “Services to communicate”, then “VIES Archive” and complete the “Inclusion Communication” by entering your VAT number.
• Enablement is generally immediate, but the Revenue Agency reserves a maximum of 5 working days for verification.

Cost of registration:

VIES registration is free. There are no costs associated with registration or maintaining the registration.

Importance and consequences of non-registration:

• Non-taxability of VAT: without VIES registration, you will not be able to apply the non-taxability regime for intra-community B2B supplies, which would complicate fiscal management and could lead to penalties.
• VAT number verification: you will not be able to verify the validity of the VAT numbers of your EU clients or suppliers through the VIES system, making it difficult to correctly manage intra-community operations.
• Penalties: lack of registration, although not necessarily preventing the intra-community nature of the operation, can lead to administrative penalties. The Revenue Agency can even order official exclusion from VIES if Intrastat lists are not submitted for 4 consecutive quarters or in case of irregularities detected during checks.

In summary, VIES registration is a mandatory and fundamental step for anyone wishing to operate in the single European market under a B2B regime, ensuring the correct application of VAT regulations and facilitating commercial exchanges.

Do you want to know more or have questions? Contact us via email at info@fiatlux.legal. Our experts are at your disposal.