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Italian government has introduced Value added tax (also known as VAT) back in year 1972, having a local name in Italian “Imposta sul Valore Aggiunto (IVA)”. Italian officials have also decided to introduce the VAT directives and other initiatives developed by the European Union, where Italy is one of the founding members.

The Italian VAT regulations are can be found in the VAT laws and other legal acts, which are constantly backed up by judicial precedents. Local tax office also develops and introduces Administrative Doctrines, containing different general guidelines on a daily VAT application. The value added tax system is under supervision of the Italian Ministry of Finance.

As the common European Union VAT regulation states, all companies performing trade on the territory of Italy and supplying goods or services subjected to taxation, must comply with the local tax legal regulations. The latter have included the obligations to apply for the local VAT number, meet all requirements of the Italian VAT regulations as well as fill and submit VAT reports and other declarations on a regular basis.

Cases in which a company must register Italian VAT
Whenever a foreign, non-resident company is selling goods or rendering services, in this case it can face the legal requirement to apply at the tax office in the same manner as a local tax payer and acquire an Italian VAT number. Under the following circumstances a company may be obliged to acquire Italian VAT number:

Importing goods into Italy, however, in case the client has Italian VAT number - the supplier is allowed not to estimate local VAT;
Purchasing and trading goods on the territory of Italy, provided the supplier and customers aren’t Italian company with a local VAT number;
Provision or acceptance of intra-community supplies, or receipt of goods as acquisitions from other European Union member states;
Selling goods to individual consumers using the internet, are subjected to the local remote selling registration threshold;
Storing goods in a consignment warehouse on the territory of Italy for the purpose of supplies in Italy or, alternatively, in the EU;
Charging admission and entry fees to live events or exhibitions on the territory of Italy;
E-commerce transactions, provided the goods are sold to the Italian consumers online.
Starting from year 2010, there are almost no situations in which a non-resident VAT number registration is required in order to provide services on the territory of Italy. Instead, the Italian customer records the transaction under the reverse charge mechanism.

Keep in mind that providers of digital, broadcasting or telecommunication services directly to the Italian consumers only have to apply for VAT number in one of the European Union member states according to the MOSS scheme, in order to file a single return covering all 28 member states.

Basic Italian VAT information
Below you can see basic information regarding Italian value added tax.

Standard VAT Rate: 22%
Reduced VAT Rate: 4%, 10%
Registration Threshold Distance Selling: 35,000 €
EU VAT number format: IT99999999999
VAT returns
The yearly VAT return and the Annual Communication of VAT Data must be submitted to the local tax administration. No monthly – quarterly periodical VAT returns have to be submitted. The Annual Communication of VAT Data has to be submitted only by digital ways of communication during February. The yearly VAT return has to be submitted exclusively by digital ways of communication by 31st September and has to be filed together with the corporate tax return.

The development of telecommunications and economic globalization have made it possible for interested investors to set up companies all over the world. With proper research, financial investment and legal backing, business ventures can be safely incorporated in almost any country in the world. Building an international business used to be a complicated entrepreneurial venture, but today it is commonplace with the help of experienced legal and business advisors.

The advantages of founding a company abroad are as numerous as they are obvious. Many countries offer specific locational advantages, ranging from natural resources and well-established infrastructure to beneficial laws and regulations that encourage growth in a particular industry. Likewise, it can be difficult to start a business or an acquisition in your own country due to adverse situations: political or regulatory environment, lack of resources and more. In this situation, it makes sense to consider an overseas option that offers greater opportunities for growth, development, and success.

Company registration in the Solomon Islands
When starting a business in the Solomon Islands, an interested investor must conduct due diligence on legal procedures, international regulations and sufficient investment for success. It is crucial to understand cultural, social and political factors that influence starting and growing one's business. Failure to do so may result in unintended consequences. Poorly researched and toneless international launches often end in disaster as time, money and energy is wasted due to poor planning.

Contact us for additional information on incorporating a company within the Solomon Islands jurisdiction.

Legal Documents
Every country in the world presents its own intricate challenges when it comes to starting, developing and maintaining a business. Owners, financiers and investors must make these commitments with the support of a knowledgeable and experienced legal team. Only someone with in-depth knowledge of local and international corporate law will be able to set up an overseas business while avoiding the pitfalls that plague many new businesses.

Additionally, smart business people can consider ways to invest in foreign companies without actually starting their own businesses. In these situations, it is still beneficial for the investor to partner with a knowledgeable global economics and litigation advisor. International investments create a truly diverse portfolio that offers growth opportunities that were unthinkable decades ago.

Potential investors, venture capitalists and entrepreneurs should consider the existing infrastructure in the Solomon Islands when planning to start a new business. While extensive infrastructure and systems can help make the process of starting a business a smooth one, it could also represent market saturation and reduced growth potential. On the other hand, a lack of infrastructure is often a major obstacle to growth; However, the lack of infrastructure points to a clear market opening for a creative and efficient new business.

The currency of the country is Euro. The symbol used for this currency is €, abbreviated to EUR. 5.5% of the country's population is unemployed. The total number of unemployed in Austria is 481,350. Austria exports around 165.6 billion US dollars a year and imports around 167.9 billion US dollars. The country's Gini index is 26.3. Austria has a Human Development Index (HDI) of 0.881. The Global Peace Index (GPI) for Austria is 1.198. Austria has a public debt equal to 57.4% of the country's gross domestic product (GDP) as estimated in 2012. Austria is considered a developed nation. A nation's stage of development is determined by a number of factors including, but not limited to, economic prosperity, life expectancy, income equality and quality of life. The country's main industries are construction, machinery, vehicles and parts, food, metals, chemicals, lumber and wood, paper and cardboard, communications equipment and tourism.

The total gross domestic product (GDP) calculated as purchasing power parity (PPP) in Austria is 402 billion US dollars. Every year, consumers spend around $230,783 million. The ratio of consumer spending to GDP in Austria is 61%, the ratio of consumer spending to the world consumer market is 0.54. Corporate income tax in Austria is 25%. Personal income tax ranges from 0% to 50% depending on your specific situation and income level. VAT in Austria is 20%.