The Italian Revenue Agency has published Circular No. 13/2025, clarifying the rules and procedures for small businesses accessing the new EU cross-border VAT exemption scheme, which allows simplified reporting and zero VAT on intra-EU transactions.
Italy’s Revenue Agency issued the Circular No. 13 on 16 December 2025 on 17 December 2025, detailing the new cross-border exemption scheme for small businesses, introduced under Legislative Decree No. 180/2024, which implements changes to the EU VAT Directive.
The scheme allows EU-established businesses to supply goods and services in other Member States without charging VAT or claiming deductions, with simplified administrative requirements.
Italian-established taxpayers must submit a prior request for authorisation, meet turnover thresholds of EUR 100,000 across the EU and the Member State-specific threshold and report quarterly on transactions in Italy and other EU countries.
Certain entities, including non-EU businesses with Italian establishments and non-resident VAT-registered taxpayers, are excluded.
For taxpayers established in other EU Member States, only individuals can access the scheme in Italy, subject to national turnover thresholds of EUR 85,000 or the lower Stability Law limit.
VAT numbers are adjusted for exempt operations, while obligations for taxable transactions, such as reverse charge purchases, remain in place. Termination of the exemption can be voluntary or mandatory, each with specific effects and start dates.
Failure to comply with reporting deadlines carries fines ranging from EUR 250 to EUR 2,000.
