TAR Lazio Hearing: New VAT Rules for Non-EU Companies in Italy
A significant administrative hearing in Rome recently examined how Italy’s new tax rules impact international businesses. The Lazio Regional Administrative Court (TAR Lazio) held proceedings on 28 January 2026 to evaluate regulations introduced by the Italian Ministry of Economy and Finance regarding VAT registration for foreign enterprises.
The New Compliance Framework
According to recent legislative changes, non-European companies conducting business in Italy must appoint a local fiscal agent and register with the VAT Information Exchange System (VIES). The updated regulations now mandate these companies to provide substantial financial security—typically a three-year, €50,000 bank guarantee—before obtaining VAT registration.
The Legal Challenge
Several Asian-based corporations, primarily from China, have contested these requirements through formal legal channels. Their appeal followed initial rejection by administrative authorities and subsequent review by Italy’s Council of State, which acknowledged the complexity of the legal issues involved.
Procedural Considerations
The court first addressed whether the appeal met filing deadlines. Standard administrative procedure allows 60 days for appeals, but exceptions exist for international parties who may receive 150 days due to cross-border complexities.
The State’s defense argued that companies with a tax representative in Italy should be considered equivalent to Italian entities for the purposes of procedural deadlines. Consequently, according to this interpretation, the short 60-day deadline would be the applicable one.
The appellant companies argued that, despite the presence of the tax representative, the corporate decisions and the necessary notarial documents originate from the foreign headquarters, inevitably lengthening the procedures. For this reason, according to their interpretation, the extended 150-day deadline should apply.
Core Legal Issues
If the court accepts the appeal, it will evaluate whether the financial guarantee requirements represent disproportionate administrative burdens.
The companies argue that modern e-commerce platforms already provide adequate VAT oversight, making additional guarantees unnecessary for low-risk operators.
Current Implementation Status
Pending judicial review, the regulations remain fully effective. International companies must continue complying with all existing requirements, including financial guarantee provisions.
For non-EU companies that must already comply with these obligations, you can learn more about the requirements and procedures for submitting the financial guarantee required for VIES registration on the specialized website.
Expected Developments
The court’s determination, expected within six months, will establish important precedents regarding:
- Procedural treatment of internationally-structured businesses
- Interpretation of administrative filing deadlines
- Proportionality analysis of regulatory requirements
Broader Implications
This proceeding represents a critical examination of how national tax administrations balance regulatory control with international commerce facilitation in increasingly digitalized economies.
