VAT Registration: Businesses engaged in taxable transactions in Italy are generally required to register for VAT. This involves obtaining a VAT identification number from the Italian tax authorities. Registration can be done online or through a physical application.

VAT Rates and Invoicing: Familiarize yourself with the different VAT rates applicable to goods and services in Italy. Ensure that you charge the correct VAT rate on your sales and issue proper VAT invoices to your customers. The invoices must contain specific information required by the Italian tax authorities, including your VAT identification number.

VAT Returns and Payments: Registered businesses must file periodic VAT returns, usually on a quarterly basis, reporting their VAT transactions. The VAT return should include both output VAT (VAT charged on sales) and input VAT (VAT paid on purchases). The difference between output VAT and input VAT determines the VAT liability or refund.

Intrastat Declarations: If your business is involved in intra-Community acquisitions or supplies with other EU member states, you may have to submit Intrastat declarations. These declarations provide statistical information on the movement of goods between EU countries and help monitor trade within the EU.

Recordkeeping: Maintain proper records of your VAT transactions, including invoices, receipts, import/export documentation, and any other relevant documents. These records should be kept for at least ten years.

VAT Compliance Checks: Be prepared for VAT compliance checks by the Italian tax authorities. They may conduct periodic audits or inspections to verify the accuracy and completeness of your VAT reporting and transactions. Ensure that your records are organized and easily accessible for such checks.

VAT Refunds: If you are entitled to a VAT refund, follow the procedures outlined by the Italian tax authorities to claim the refund. This typically involves submitting a VAT refund application with supporting documentation.