Italian VAT Bank Guarantee — What You Need to Know

Modified on Wed, 13 May at 3:56 PM

Italy requires a €50,000 financial guarantee for VIES registration. This article explains what the guarantee is, why it’s needed, and what your options are. If you already know which route you want to take, follow the links at the bottom to the relevant guide.

What is the bank guarantee requirement?

Italy requires non-EU businesses to provide a financial guarantee as a condition of VIES registration. Italy introduced this requirement as part of its measures to combat VAT fraud in cross-border transactions. It gives the Italian Tax Authority financial security against potential VAT non-compliance — if a business fails to meet its Italian VAT obligations, the Tax Authority can call upon the guarantee. The guarantee names the Italian Tax Authority (Agenzia delle Entrate) as the beneficiary, and must be in place before your VAT number becomes valid for cross-border trade.

Who needs to provide this guarantee?

You’ll need to provide the guarantee if the following apply to your business:

Your business is based outside the EU (and outside Iceland, Liechtenstein, and Norway).
You are registered for Italian VAT through a fiscal representative (rather than registering directly).
You need to be registered in VIES to buy or sell across EU borders. This includes selling to or buying from EU businesses, as well as moving your own stock between Italy and other EU countries (for example, through Amazon FBA).

Guarantee requirements

Based on the official regulations, the guarantee must meet the following conditions:

Amount: €50,000
Duration: 36 months (one-time — no renewal required under current rules)
Beneficiary: the Italian Tax Authority (Agenzia delle Entrate)
Applies to: new VIES registrations and existing VIES registrations

Does this mean I need to pay €50,000?

Not necessarily — and for most clients, the answer is no.

The most common approach is an insurance surety bond (‘Polizza Fideiussoria’). Instead of depositing €50,000, you pay a one-time insurance premium to an approved insurer, who then issues the guarantee on your behalf. The insurer carries the financial risk — you just pay the fee.

This is also the fastest option, and it’s what Taxually recommends for most clients.

Your options

Option	How it works	Who handles it
Insurance surety bond	An approved insurer issues the guarantee on your behalf. You pay a one-time premium — no €50,000 deposit needed.	✅ Taxually can coordinate this for you — or you can arrange it yourself
Bank guarantee	Your bank issues the guarantee. May involve fees and potentially collateral depending on your bank.	Self-arrangement only
Cash deposit	You deposit €50,000 with the Italian Tax Authority directly. The capital is tied up for 36 months. Rarely used in practice.	Self-arrangement only

For details, see the related articles below.

Frequently asked questions

Will this affect sales within Italy?

No. The guarantee only applies if you trade across EU borders. If you only sell within Italy, it doesn't apply to you.

Why is this required?

It's part of Italy's effort to reduce VAT fraud on cross-border trade.

Do I need to renew after 36 months?

Under current rules, no — the guarantee is a one-time requirement. We’ll let you know if this changes.

What happens if my VIES registration is removed?

If a removal procedure starts, you’ll have 60 additional days to provide the guarantee. Once a valid guarantee is lodged, your VIES registration can be reinstated.

What if I don’t need VIES?

If you only carry out sales within Italy and don’t need VIES, the guarantee is not required. If this applies to your situation, please contact us.

Related articles

ℹ Informational content only. This article is for general information and does not constitute tax or legal advice. For questions about your specific situation, please contact the Taxually support team.