The Italian Revenue Agency has established procedures and controls governing access to the cross-border VAT exemption regime, including notifications, reporting, turnover thresholds, and the “EX” VAT suffix.
The Italian Revenue Agency, through the measure issued on 10 December 2025, has defined the procedures for verifying compliance by entities intending to apply the special cross-border VAT exemption regime.
The measure follows the implementation, by Legislative Decree No. 180/2024, of Directive (EU) 2020/285, which introduced significant amendments to the EU VAT system for small enterprises.
The measure details the modalities by which eligibility requirements are assessed for (i) entities established in Italy seeking to avail themselves of the regime in other Member States and (ii) entities not established in Italy seeking to apply the exemption within Italian territory. The rules have been formulated in line with the explanatory notes and guidance issued by the European Commission in October.
After setting out an extensive list of definitions, the measure specifies the procedural framework for the controls associated with the new cross-border VAT exemption regime.
Controls on the Preliminary Notification
Entities established in Italy are required to submit a preliminary notification to access the regime. Upon expiry of the statutory submission deadline, the transmitted data is subject to conformity checks, including cross-referencing with datasets already held by the Agency.
The controls concern the consistency of the declared turnover with:
- electronic invoices issued for domestic transactions and supplies to public administrations;
- transactions carried out with non-resident counterparties;
- electronically transmitted daily receipts;
- annual VAT returns;
- periodic VAT settlement communications.
Where inconsistencies are detected, the system issues a rejection notice (“Inconsistency in the reported turnover data”). The entity may submit a new notification starting from the following day.
Verification of Turnover Thresholds
The Agency verifies compliance with the turnover limits established under the regime:
- EU-wide turnover not exceeding EUR 100,000 in the preceding calendar year;
- EU-wide turnover not exceeding EUR 100,000 in the current calendar year (exceeding this threshold entails that a new application may only be filed from the second subsequent year);
- compliance with the national exemption threshold applicable in the Member State concerned.
Failure to comply results in rejection of the notification, without prejudice to the right to resubmit within the deadlines set by the relevant Member State.
Assignment of the “EX” Suffix
Operational implementation includes assigning the “EX” suffix to the VAT identification number.
The suffix is assigned:
- upon receipt of affirmative responses from all Member States in which exemption is sought;
- If one or more States fail to respond within 35 working days, the Agency will still assign the suffix unless extensions are requested for additional anti-avoidance checks.
Controls on Quarterly Reports
The measure also regulates the monitoring of quarterly communications, providing for verification of:
- the timely submission of the communication;
- the internal consistency of the data reported;
- compliance with national and EU-wide turnover thresholds.
In cases of non-submission, the Agency notifies the competent authorities of the other Member States concerned.
Termination of the Regime
The regime may be terminated upon presumed cessation of activity. The EX suffix is deactivated when the taxable person has ceased activity or when the VAT number is cancelled ex officio.
Cessation is presumed when, for eight consecutive quarters, the quarterly communications report zero values and no cross-border transactions with entities established in other exempting Member States are recorded. In such cases, the Agency deactivates the EX suffix, informs the taxpayer via the reserved area of the tax portal, and notifies the Member States concerned.
Re-access to the regime requires submission of a new preliminary notification, subject to any “quarantine” period imposed by the Member States granting exemption.
When the VAT number is cancelled ex officio, the EX suffix is automatically deactivated.
Obligation of VAT Identification in Italy for Non-Established Entities
For non-resident entities authorised to apply the exemption in Italy, a specific procedure is activated if the Agency receives two consecutive reports from the Member State of establishment indicating non-submission of quarterly communications.
In such circumstances, the Agency informs the State of establishment that the entity must register for VAT purposes in Italy and submit the annual VAT return.
