Fiscal representation Italy compulsory?

Fiscal representation Italy compulsory?

Fiscal representation Italy


If you are a company that deals with Italian companies in order to import and export goods then fiscal representation in Italy becomes quite important because there are a lot of different rules which are imposed by Italian tax authorities and one cannot be expected to know all of them. Plus an Italian representative or someone who knows Italian should be appointed as he or she will know the language because one cannot get away with not knowing Italian when he is doing business in Italy. Let us see more reasons why you absolutely should hire a tax representative.


Reasons why you should have a fiscal representative in Italy are :


                                          i.    He will handle all communication with the tax authorities.

This communication includes enquiries in order to avoid tax risks. The fiscal representative also suggests a plan of action when you and the tax authority are in dispute. If there are certain laws which are ambiguous then the representative comes up with an efficient course of action.


                                        ii.    When the VAT threshold is exceeded then you should go for fiscal representation in Italy because their people (the representatives) would resolve the issue on your behalf. This specially helps in the case when you started out with your business and were not liable to pay tax but then your statistics crossed the VAT threshold.


                             iii.   Any cross border operations will be taken care of by the tax representative.

Cross border VAT rules came into effect after the European custom borders stopped existing in 1993. In the last 25 years VAT has undergone many a change and is quite complex and unclear for businessmen therefore the fiscal representatives now assume a great role in simplifying the laws and making the rules easy to understand for traders and the fiscal representatives have also started managing all the VAT obligations of the said traders.


                                       iv.    The fiscal representative will take care of all filings


                                        v.    Any change of rules and regulations that could affect you will be notified to you and be taken care of on your behalf. For example Italy passed a new law in December 2016 to make sure tax evaders get caught. This rendered useless past laws related to tax filing and brought out new provisions. Now you as a tax payer might not come to know of these changes but a fiscal representative would know and help you.


                                       vi.    The fiscal representative also helps you take the matter to the court and file a suit if out of court settlement is just not possible. If you get into a legal brawl with the tax authorities then the fiscal representative will first try all settlement measures but if that is not possible then you have a knowledgeable person on your side who will fight the case for you.



You should look for a fiscal representative who has a vast experience, a deep know how of the tax system and preferably someone who has good relations with the tax authorities. It’s not just in Italy that the tax laws are complex but everywhere and even experts who have studied tax might not be expected to know all tax related and trade related provisions therefore make sure you hire someone who knows the tricks of the trade and not just someone with qualifications.