IVA: regimes, rates and reverse charge
Imposta sul Valore Aggiunto (IVA) is the Italian VAT, established by DPR 633/72 of 26 October 1972. Five rates coexist, two special regimes lighten the declarative load on small actors, and the reverse charge mechanism covers about ten sensitive sectors. Every FatturaPA invoice must explicitly declare its IVA regime in the XML.
Regime Ordinario
The general regime applied by default to any VAT-registered person above the thresholds of special regimes. Key features:
- Returns — periodic IVA liquidations (monthly if turnover > €400k services / €700k goods, otherwise quarterly), annual return Modello IVA filed between 1 February and 30 April N+1.
- Liquidazioni Periodiche IVA (LIPE) — mandatory quarterly communication of liquidations.
- Esterometro integrated into SdI — since 1 July 2022, cross-border operations are reported via SdI in XML, no separate report.
- Input IVA deduction — full on professional purchases, with sector restrictions (fuel 100% in 2024, hospitality 100%, etc.).
- Split payment (Art. 17-ter) — for suppliers of public administration: the PA pays net to the supplier and VAT directly to the Treasury.
Regime Forfettario
Flat-rate regime introduced by Legge 190/2014, radically simplifying taxation for micro-entrepreneurs and independent professionals.
- 2025 threshold: €85,000 of annual turnover (raised from €65,000 to €85,000 by Legge di Bilancio 2023).
- Flat tax: 15% of taxable turnover (5% for the first 5 years for new activities under conditions).
- Redditività coefficients: per ATECO code, ranging from 40% to 86% depending on the sector (e.g. 78% for professional activities, 67% for trade, 40% for trade intermediation).
- IVA: not collected, not deducted. Issued invoices carry
Natura N2.2in the SdI XML. - Mandatory e-invoicing: from 1 January 2024 for all forfettari (previous thresholds — > €25k or > €65k — all abolished).
- Exclusion causes: partnership share, > 50% control of an SRL in a related activity, employment income > €30,000, primary activity towards a former employer.
<DatiRiepilogo>
<AliquotaIVA>0.00</AliquotaIVA>
<Natura>N2.2</Natura>
<ImponibileImporto>500.00</ImponibileImporto>
<Imposta>0.00</Imposta>
<RiferimentoNormativo>Operazione non soggetta - Regime Forfettario Legge 190/2014</RiferimentoNormativo>
</DatiRiepilogo>Regime di Vantaggio (legacy)
Transition regime introduced by DL 98/2011 and closed to new enrolments since 31 December 2014. Still active for taxpayers who opened their activity between 2008 and 2014 and have not migrated to the Forfettario.
- Flat tax: 5% of taxable income.
- Threshold: €30,000 annual turnover.
- Duration: 5 years, extendable up to age 35 for under-35 entrepreneurs.
- Sunset: 31 December of the 5th year or 35th birthday; automatic migration to Forfettario if thresholds are respected, otherwise Ordinario.
2025 IVA rates
| Rate | Category | Examples | N code (XML) |
|---|---|---|---|
| 22% | Standard | Most goods and services | — |
| 10% | Reduced | Catering, hotels, passenger transport, certain foodstuffs | — |
| 5% | Very reduced | Truffles, basil, rosemary (Legge di Bilancio 2020), domestic gas (temporary measure) | — |
| 4% | Super-reduced | Basic food (bread, pasta, milk, meat), books, disability aids, primary home | — |
| 0% | Export / intra-EU / non taxable | Exports to third countries, intra-EU B2B supplies, Art. 8-bis and 9 DPR 633/72 operations | N3.1, N3.2, N3.3 |
| Exempt without deduction | — | Medical care, education, financial services, insurance | N4 |
| Reverse charge | — | See section below | N6.x |
Reverse charge (Art. 17-bis DPR 633/72)
The reverse charge mechanism shifts the IVA liability: the buyer, not the
seller, declares and pays VAT to the State. The FatturaPA XML carries
AliquotaIVA = 0.00 and a specific Natura N6.x code.
| Natura | Case | Legal reference |
|---|---|---|
N6.1 | Sale of gold and fine silver (Art. 17, c.5) | DPR 633/72 Art. 17 c. 5 |
N6.2 | Sale of ferrous and non-ferrous scrap | DPR 633/72 Art. 74 c. 7, 8 |
N6.3 | Construction sub-contracting (Edilizia) | DPR 633/72 Art. 17 c. 6 lett. a) |
N6.4 | Real-estate sale (option regime) | DPR 633/72 Art. 17 c. 6 lett. a-bis) |
N6.5 | Mobile phones > €5,000 (anti-carousel) | DPR 633/72 Art. 17 c. 6 lett. b) |
N6.6 | Microprocessors, consoles, tablets > €5,000 | DPR 633/72 Art. 17 c. 6 lett. c) |
N6.7 | Construction services in edilizia sector | DPR 633/72 Art. 17-bis c. 6 |
N6.8 | Electricity, gas (B2B certified traders) | DPR 633/72 Art. 17 c. 6 lett. d-bis, d-quater) |
N6.9 | Other reverse charge cases | Applicable provision |
<DatiRiepilogo>
<AliquotaIVA>0.00</AliquotaIVA>
<Natura>N6.7</Natura>
<ImponibileImporto>1000.00</ImponibileImporto>
<Imposta>0.00</Imposta>
<RiferimentoNormativo>Art. 17-bis comma 6 DPR 633/72</RiferimentoNormativo>
</DatiRiepilogo>SdI compatibility
Every Italian VAT-registered person, whatever their regime, must issue invoices via the SdI from 1 January 2024 (final extension to under-€25k forfettari). A few residual exceptions:
- Doctors and healthcare professionals for invoices to natural persons (GDPR-related restrictions — exception extended through 31 December 2024).
- Cross-border operations where the foreign recipient has no accreditation channel: use of CD =
XXXXXXX. - Operations under VAT franchise (Art. 1 c.58 Legge 190/2014) — still on paper in some marginal cases prior to 2024.