Guarantee for VAT Fiscal Representative: all the new provisions of the 2025 decree.

Imagine you’re a foreign entrepreneur determined to expand your business in Italy. You’re faced with the complex world of taxation and come across the concept of a “Fiscal Representative.” This role, essential for legally operating in our country for VAT purposes, entails specific responsibilities, including the provision of a mandatory surety bond. But what has changed with the new decree of April 17, 2025?

Join us on this journey, where we’ll clarify all your doubts.

What is a Fiscal Representative for VAT purposes?

(The Ordinary World)
A fiscal representative is mandatory when a foreign company, without a permanent establishment in Italy, carries out taxable operations for VAT purposes. This intermediary plays a crucial role in managing the tax obligations of the represented company.

The Innovation of the April 17, 2025 Decree

The Decree from the Director of the Revenue Agency dated April 17, 2025, establishes new operational procedures for those assuming the role of fiscal representative, focusing particularly on the obligation of providing a surety bond. In summary:

• New mandatory subjective requirements.
  
• Updated amounts for the required guarantees.
  

More precise procedures for providing the surety bond.

Subjective Requirements for the Fiscal Representative

Many might underestimate the importance of these requirements, but be careful: lacking even one leads to the automatic revocation of the fiscal representation. Necessary requirements include:

• No convictions for financial crimes.
  
• No pending criminal proceedings for tax offenses.
  

Compliance with contribution and tax regulations.

Mandatory Surety Bond: Who Must Provide It?

Here’s the core of the Decree’s innovation: the guarantee (surety bond) is mandatory only for those representing two or more entities. The surety bond is differentiated by tiers:

• 2 to 9 entities: €30,000
  
• 10 to 50 entities: €100,000
  
• 51 to 100 entities: €300,000
  
• 101 to 1000 entities: €1,000,000
  
• More than 1000 entities: €2,000,000

Those representing a single entity are not required to provide any guarantee but must still declare possession of the subjective requirements.
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How to Provide the Surety Bond

The guarantee can be provided in the form of:

• Surety insurance policy
  
• Bank guarantee
  
• Collateral in government securities
  

The document must contain precise information, including identification data, amount, minimum duration of 48 months, and the indication of the competent Provincial Directorate of the Revenue Agency.

What Happens if the Number of Represented Entities Increases?

If during your activity the number of represented entities increases, entering a new tier, you must provide a new surety bond corresponding to the higher tier, then release the previous guarantee once the new one is accepted.

Procedure for Submitting the Guarantee

The surety bond must be submitted simultaneously with the declaration of commencement of activity or the change of VAT data at the competent Provincial Directorate. The Revenue Agency will verify it and, once approved, will officially authorize the fiscal representative to operate.

Consequences of Failing to Provide the Surety Bond

If an already operating fiscal representative does not submit the surety bond within 60 days from the decree’s effective date, the Agency will initiate the procedure to terminate the VAT numbers of the represented entities. An additional 60-day period is granted before the definitive termination of the VAT numbers.

What to Do Today to Comply?

The key to calmly facing this new regulation is to act immediately, ensuring to:

• Verify the subjective requirements.
  
• Determine the amount of the surety bond based on the represented entities.
  
• Correctly submit the guarantee to the Revenue Agency.
  

Doing all this today means protecting your future and that of your clients in Italy.