Mandatory Guarantee for VIES Registration for Non-EU Companies

An In-Depth Guide for International Businesses

With Decision No. 178713/2025 of 14 April 2025, the Italian Revenue Agency has introduced a structural change that directly affects non-EU companies operating in Italy through a tax representative. From that date onward, the provision of a financial guarantee of at least EUR 50,000 has become a mandatory condition for obtaining or maintaining registration in the VIES (VAT Information Exchange System).

This measure is not a mere formal requirement. It represents a decisive shift in the Italian VAT control system and has concrete legal, financial and operational consequences for foreign businesses seeking access to the EU internal market via Italy.

1. Scope of Application: Which Companies Are Affected

The obligation to provide a guarantee applies exclusively to entities that meet all of the following conditions:

✓ the company is established outside the European Union and the European Economic Area (EEA);
✓ Italian VAT obligations are fulfilled through the appointment of an Italian tax representative, pursuant to Article 17(3) of Presidential Decree No. 633/1972;
✓ the company applies for or maintains registration in the VIES database in order to carry out intra-Community transactions.

The obligation does not apply to:

✓ companies established in an EU or EEA Member State;
✓ non-EU companies that have opted for direct VAT identification in Italy, without appointing a tax representative.

This distinction is crucial when planning the most efficient VAT structure for foreign operators entering the Italian and EU markets.

2. Legal Rationale and Policy Objectives

The introduction of the mandatory guarantee forms part of a broader strategy aimed at strengthening VAT anti-fraud mechanisms. In recent years, Italian tax authorities and courts have increasingly emphasised that access to the VIES system must be limited to reliable and economically sound operators.

The new framework pursues several objectives:

✓ preventing the improper or instrumental use of VIES registrations by non-EU entities;
✓ increasing the level of financial protection available to the tax authorities;
✓ reinforcing the central role and responsibility of the tax representative, who is jointly and severally liable for VAT obligations of the foreign company;
✓ aligning administrative practice with consolidated case law, according to which VIES registration constitutes a substantive condition for the application of the VAT exemption regime on intra-Community supplies.

As a result, compliance is no longer purely procedural but becomes an essential element of VAT risk management.

3. Forms and Mandatory Characteristics of the Guarantee

The guarantee must comply strictly with the requirements set out in the Decision of 14 April 2025.

In particular, it must:

✓ have a minimum amount of EUR 50,000;
✓ have a minimum duration of 36 months from the date of submission to the Italian Revenue Agency;
✓ be issued in favour of the Director of the competent Provincial Office of the Italian Revenue Agency, identified based on the tax domicile of the tax representative;
✓ strictly follow the standard templates attached to the Decision, including mandatory clauses such as the waiver of the right to prior enforcement.

The guarantee may be provided in one of the following forms:

✓ a security deposit in Italian government bonds or state-guaranteed securities;
✓ an insurance surety bond;
✓ a bank guarantee issued in accordance with Law No. 348/1982.

The guarantee must be physically filed with the competent Provincial Office, either directly or through the appointed tax representative.

4. Operational Procedures and Timing

The procedural steps vary depending on whether the foreign company already holds an Italian VAT number.

✓ Companies already VAT-registered in Italy must submit the guarantee before applying for inclusion in the VIES database.
✓ Companies not yet VAT-registered must provide the guarantee simultaneously with the VAT registration application in which the VIES option is exercised.

In all cases:

✓ the competent Provincial Office carries out a formal and substantive review of the guarantee;
✓ only after a positive assessment may the VIES registration be effectively processed.

Failure to comply with these procedural steps results in the impossibility of lawfully carrying out intra-EU transactions.

5. Transitional Regime for Existing VIES Registrations

A specific transitional regime applies to non-EU companies that were already registered in the VIES database as of 14 April 2025.

These entities:

✓ have 60 days from the publication of the Decision to provide the required guarantee;
✓ in the event of non-compliance, receive a formal notice initiating the exclusion procedure;
✓ benefit from an additional 60-day period to regularise their position;
✓ if the guarantee is still not provided, are automatically excluded from the VIES database, without any discretionary assessment by the tax authorities.

Automatic exclusion may have immediate and severe commercial consequences, including the disruption of supply chains and the loss of VAT-exempt status for intra-Community transactions.

6. Practical Impact for Foreign Companies and Tax Representatives

For non-EU companies

The new rules imply that:

✓ access to the EU market via Italy now involves a clear financial and compliance threshold;
✓ VAT structuring decisions must be taken at an early stage;
✓ inadequate planning may lead to delays, additional costs or exclusion from intra-EU trade.

For Italian tax representatives

The reform significantly increases their exposure:

✓ joint and several liability becomes a concrete operational risk;
✓ thorough preliminary due diligence on the foreign client is essential;
✓ ongoing monitoring of compliance becomes a key professional obligation.

7. Strategic Considerations and Legal Assistance

In light of this regulatory framework, non-EU companies are strongly advised to:

✓ assess in advance whether a tax representative or direct VAT identification is more appropriate;
✓ structure the guarantee in strict compliance with Italian administrative requirements;
✓ rely on specialised legal and tax advisors to avoid costly mistakes.

How OS Law Can Assist You

OS Law provides comprehensive legal support to non-EU companies seeking to operate in Italy and the European Union, including:

✓ assistance with VAT registration and VIES enrolment;
✓ drafting and verification of financial guarantees;
✓ appointment and coordination of tax representatives;
✓ strategic VAT planning for cross-border operations.

Contact OS Law to ensure compliant, secure and efficient access to the EU internal market through Italy.