Italy Accounting Services

Financial reports & Tax Filing at your fingertips

House of Companies is thrilled to offer our clients the most cutting-edge bookkeeping services in Italy. Our team of experts is equipped with the latest tools and technologies, which enable us to deliver innovative solutions that are tailored to meet your unique needs in the Italian market.

With advanced and next-level support, you can rest assured that your bookkeeping needs are in the best possible hands. Let's get started with your Italian accounting journey!

It's becoming simpler every day to deliver and process invoices, bank statements, and even agreements (such as your lease) in Italy. The procedure of submitting your data is made simpler by House of Companies using a single source for all documents, data and reports. You can track our progress, and your profits, in real-time!

Automate your OSS VAT filings for e-commerce and imports.

Automate financial year-end and statement preparation in Italy

Simplify VAT filing for EU and
non-EU clients in
Italy

Expand and manage your business in Italy effortlessly

Our services include processing invoices, bank statements, and agreements such as leases, all through a centralized platform that simplifies data submission. You can track the progress of your financial operations and profits in real time, providing transparency and ease of management in Italy.

Overview of Italy Accounting Regulations

Italy has a comprehensive legal framework governing financial reporting, primarily based on the Italian Civil Code (Codice Civile) and the Italian GAAP (OIC - Organismo Italiano di Contabilità). This framework is supplemented by EU regulations, including the EU Accounting Directive 2013/34/EU, and International Financial Reporting Standards (IFRS) as adopted by the EU for certain entities.

Entities listed on regulated markets must comply with additional reporting requirements under the Consolidated Law on Finance (Testo Unico della Finanza, TUF). These requirements include publishing annual financial reports within four months of the end of the financial year and half-yearly financial reports within three months after the first six months of the financial year.

Difference between an Italian company with substance (permanent establishment) and without substance (non-resident) for corporate tax and VAT

For corporate tax purposes, an Italian company with substance, i.e., a permanent establishment (PE), is subject to corporate income tax (IRES) on its worldwide income. In contrast, a non-resident company without a PE in Italy is only liable for IRES on Italian-source income, such as profits from a PE or income from Italian real estate.

Regarding value-added tax (IVA), an Italian company with substance must register for IVA and charge IVA on its supplies of goods and services. A non-resident company without a PE in Italy may still be required to register for IVA if it makes taxable supplies in Italy, such as distance sales or e-services to non-IVA registered customers.

Legal Entity Types for Non-Residents

Non-resident entities seeking to establish a presence in Italy have several legal entity options to choose from, each with its own set of accounting and tax implications. The most common types include branch offices, subsidiaries, and foreign legal structures.

A branch office, also known as a permanent establishment (PE), is not a separate legal entity but an extension of the foreign company. It must be registered with the Italian Business Register (Registro delle Imprese) and is subject to corporate income tax and IVA on profits attributable to the branch.

Subsidiaries, on the other hand, are independent legal entities incorporated under Italian law, such as S.r.l. (Società a responsabilità limitata) or S.p.A. (Società per Azioni). They must register with the Italian Business Register, file annual financial statements, and comply with all Italian tax obligations, including IRES, IVA, and IRAP (regional production tax).

Accounting Consequences of Registering a Branch Office in Italy

Setting up a branch office in Italy comes with several accounting obligations. The foreign company must file its financial statements and maintain accurate books and records for the branch office. If the branch employs staff, it is required to establish an Italian payroll system, withholding and remitting the necessary wage taxes and social security contributions, which include contributions to the Italian INPS (National Institute of Social Security).

The branch office's profits are subject to Italy’s corporate income tax (IRES), and it must file regular VAT returns. Italy's transfer pricing rules apply to transactions between the branch and the foreign head office, requiring documentation to support the allocation of profits and ensure compliance with Italian tax regulations.

Choosing between a branch office, subsidiary, or another foreign legal structure in Italy depends on your business activities, along with the administrative, tax, and legal considerations that apply. Each structure has its own implications for tax obligations, liability, and financial reporting.

Non-resident entities should seek expert guidance to ensure compliance with Italy's legal and tax requirements when establishing a business presence.

Tax Registration Requirements in Italy

IVA for businesses with IVA taxable transactions

Businesses engaged in VAT taxable transactions in Cyprus are required to obtain a Cypriot VAT number. This applies to both resident and non-resident companies supplying goods or services within the country.

The registration process involves submitting an application to the Tax Department of Cyprus, providing necessary documentation such as proof of business incorporation, identification documents, and appointing a fiscal representative if the business is a non-resident entity.

Once registered, companies must charge VAT on taxable supplies, file periodic VAT returns, and maintain detailed records of all transactions. Cyprus follows the EU VAT Directive, and the standard VAT rate in Cyprus is 19%, with reduced rates of 5% and 9% applicable to specific goods and services. Non-compliance with VAT obligations can result in penalties and legal consequences, emphasizing the importance of timely registration and accurate reporting.

Register as Employer when you payroll staff in Italy

Businesses employing staff in Italy are obligated to register as an employer with the Italian Social Security Institute (INPS) and the National Institute for Insurance against Accidents at Work (INAIL). Employers must file monthly payroll tax returns and remit the withheld amounts to the relevant authorities.

Corporate Tax Liability for resident companies

Resident companies in Italy are subject to corporate income tax (IRES) on their worldwide income. The standard IRES rate is 24%. Companies must file annual corporate income tax returns and make advance payments throughout the year.

Bookkeeping and Financial Reporting Non-Resident Entities in Italy

Non-resident entities operating in Italy must adhere to bookkeeping and financial reporting requirements as outlined by Italian law. These obligations are primarily governed by the Italian Civil Code and the International Financial Reporting Standards (IFRS). Additionally, the Italian Revenue Agency (Agenzia delle Entrate) and the National Commission for Companies and the Stock Exchange (CONSOB) oversee compliance, particularly for publicly listed companies.

Non-resident businesses are required to maintain accurate records of their financial transactions and prepare financial statements at the end of each financial year. Depending on the size and nature of the company, these financial statements must either comply with Italian GAAP (Generally Accepted Accounting Principles) or IFRS, with listed companies mandated to use IFRS for consolidated financial statements.

For non-resident businesses, it’s crucial to ensure that these records are maintained in compliance with Italian tax laws and EU regulations, including the timely submission of financial statements to the Registro delle Imprese (Business Register)​. For specific guidance, consulting with local tax advisors or legal professionals is highly recommended to meet the local reporting and regulatory requirements.

Key Components of Italian Financial Statements

Consolidation Requirements

In Italy, parent companies are required to prepare consolidated financial statements that include data from controlled subsidiaries and group companies. A subsidiary is considered controlled by the parent if the parent company has the ability to exercise more than 50% of the voting rights or has the power to appoint the majority of managing or supervisory directors.

Consolidation can be omitted in specific situations, such as when the subsidiary qualifies as a small company (meeting certain size criteria based on revenue, assets, and employees) or if it is exempt under the 7th EU Directive on the preparation of consolidated financial statements. These exemptions help simplify the reporting process for small entities within a larger group​.

Audit Requirements

In Italy, medium and large companies, as well as those applying IFRS (International Financial Reporting Standards), are required by law to have their financial statements audited by an independent, qualified auditor. The audit report must verify that the financial statements provide an accurate representation of the company’s financial position and comply with Italian GAAP (Generally Accepted Accounting Principles) or IFRS, depending on the company’s size and listing status.

Non-resident entities doing business in Italy must ensure they meet the audit requirements if they fall under the relevant categories. They should engage an independent auditor who is licensed by the National Commission for Companies and the Stock Exchange (CONSOB), which regulates audits in Italy. The audit ensures compliance with local laws and provides transparency for investors and stakeholders.

For detailed guidance, companies can refer to the Agenzia delle Entrate (Revenue Agency) for tax-related matters and CONSOB for regulations on financial statement audits.

Publication Requirements

In Italy, financial statements must be prepared and approved by the company’s managing directors within six months after the end of the financial year. This allows for a comprehensive review of the company’s financial performance and position. In certain cases, companies may apply for an extension of up to 12 months if there are valid reasons for delayed filing.

The publication and filing requirements for financial statements depend on the size and structure of the company. Large companies and public interest entities are required to file their financial statements with the Registro delle Imprese (Business Register), which is managed by the Agenzia delle Entrate (Revenue Agency). Small and medium-sized companies, while still required to prepare financial statements, have fewer filing obligations and may not be required to publish them in the public registry, depending on specific thresholds established by the Italian law.

Annual Accounts Filing Obligations

Almost all corporate entities in Italy, including non-residents, are required to file their financial statements annually with the Registro delle Imprese (Business Register). These filings are essential for taxation and corporate governance in Italy. Non-residents with an Italian branch or permanent establishment must adhere to these filing obligations to avoid penalties.

Failure to comply with the filing requirements may result in legal consequences, including fines and issues with tax reporting. The Italian (Revenue Agency) oversees the submission and compliance processes for both local and foreign businesses operating within the country.

Audit Requirements

In Italy, only medium and large companies, as well as those applying International Financial Reporting Standards (IFRS), are legally required to have their annual financial statements audited by an independent, qualified, and registered auditor. The auditor’s report must confirm whether the financial statements comply with the applicable accounting principles and accurately reflect the company’s financial position and performance for the year.

The auditor's report is a key component of the financial statements, ensuring that companies adhere to Italian GAAP or IFRS, depending on their size and reporting requirements. For small companies, the audit requirement may not apply, but they still must prepare and submit financial statements​.

Publication Requirements

In Italy, financial statements must be prepared and approved by the company’s directors within six months after the end of the financial year. This gives companies sufficient time to compile accurate and comprehensive financial reports. The publication deadlines for these financial statements may vary based on the company’s size:

Italy Company Size Classification

 

Online Bookkeeping Services in Italy

Online bookkeeping services are an essential tool for businesses in Italy looking to simplify and streamline their financial operations. These services, which utilize the latest technology, provide accurate and up-to-date financial reports, efficient management of financial data, and ensure compliance with Italian tax regulations. Whether you are a small startup or a large enterprise, online bookkeeping services in Italy can help businesses maintain transparent financial records and improve decision-making processes, while also reducing the time and cost of manual bookkeeping.

By using digital platforms, businesses in Italy can manage invoicing, VAT reporting, payroll, and other financial tasks seamlessly, ensuring greater accuracy and efficiency. These services also make it easier for businesses to track financial performance in real-time, helping them stay on top of cash flow and regulatory deadlines.

Expertise in Online Bookkeeping Services

House of Companies’ online bookkeeping services in Italy are led by experienced, certified bookkeepers who are well-versed in the unique needs of non-resident businesses operating in Italy. Our team is proficient in using cloud accounting software like Xero and offers tailored accounting solutions for industries such as e-commerce and international trading.

We ensure your financial records are maintained accurately and efficiently, providing real-time reports and compliance with Italian tax regulations. Whether you're a startup or a large enterprise, we help streamline your financial management and ensure seamless integration.

Pricing for Online Bookkeeping Services

Our pricing structure is designed to provide flexibility for businesses operating in Italy. Common pricing models include:

  • Hourly rates for specific tasks
  • Monthly subscription fees for continuous bookkeeping
  • Project-based pricing for occasional projects
  • Value-based pricing focused on the value of the service provided

These options allow businesses of all sizes to choose a model that best suits their needs, ensuring they receive high-quality service that aligns with their budget and financial requirements.

Online Bookkeeping Services Features

House of Companies’ online bookkeeping services in Italy include:

  • Transaction recording and reconciliation
  • Accounts payable and receivable management
  • Bank statement reconciliation
  • Payroll processing and tax compliance
  • Real-time financial reporting and analytics
  • Multi-currency support for international businesses

Our advanced features support VAT returns across multiple jurisdictions and ensure compliance with Italian tax laws, making it easier for non-resident entities to manage their financial operations. Whether your business operates locally or internationally, our services provide accurate and efficient financial management tailored to meet the unique needs of businesses in Italy.

Industry-Specific Bookkeepers for Italy

Industry-specific bookkeepers offer invaluable expertise, particularly for businesses operating in Italy. These professionals possess in-depth knowledge of local financial regulations, tax implications, and sector-specific best practices. Here’s how they can support businesses in Italy:

  1. Protect Your Financial Policies: Bookkeepers ensure your organization adheres to Italy's accounting principles, protecting you from non-compliance penalties under Italian GAAP or IFRS.

  2. Adherence to Local and EU Regulations: Given Italy’s membership in the EU, bookkeepers ensure compliance with EU Directives and local regulations governed by the Agenzia delle Entrate (Revenue Agency) and other regulatory bodies, helping businesses remain compliant with VAT, corporate tax, and payroll taxes.

  3. Quick Error Identification: Italy-specific accounting tools and practices help quickly identify discrepancies, such as VAT miscalculations or incorrect payroll tax filings, and address issues early, minimizing risk.

  4. Maintain Strong Commercial Awareness: Industry-specific bookkeepers in Italy work with a wide range of stakeholders, ensuring businesses stay competitive, compliant, and financially sound in both local and international markets. They provide insights that enhance strategic decision-making, improve tax planning, and facilitate smooth operations across industries.

With their specialized knowledge, these bookkeepers can help businesses navigate the complex regulatory and financial landscape of Italy while ensuring their operations remain efficient and compliant.

Pricing Models for Italy-based Industry-Specific Bookkeepers

Key Features of Italy Industry-Specific Bookkeeping Services

Bookkeepers in Italy offer tailored services designed to meet the unique needs of businesses, including:

  1. Specialized Software Implementation: Bookkeepers use local accounting platforms that are fully compatible with Italian tax regulations, ensuring precise and accurate bookkeeping. These platforms are designed to integrate seamlessly with Italy’s Agenzia delle Entrate (Revenue Agency) systems for VAT and corporate tax filings.

  2. Industry-Specific Compliance: Bookkeepers ensure compliance with Italian financial laws, including VAT reporting, corporate tax filings (IRES), and annual audits. These services are critical for businesses to adhere to Italian GAAP or IFRS, depending on company size.

  3. Risk Management: Bookkeepers implement risk management practices specific to Italy’s economic environment and industry trends. This includes strategies to mitigate financial risks related to local taxation, market fluctuations, and regulatory changes, ensuring that businesses remain compliant and financially stable.

  4. Advanced Data Analytics: Leveraging local business intelligence tools, bookkeepers in Italy help businesses analyze financial data, making informed decisions that improve profitability and efficiency. Tools and insights are tailored to the specific needs of Italian companies, especially for tax planning and optimization.

  5. Integration with Local Technologies: Bookkeepers ensure seamless integration with Italy-specific technologies, including tax portals for VAT and corporate tax filings. They make use of Sdi (Sistema di Interscambio), Italy's digital invoicing platform, and other regulatory tools to streamline compliance and reporting.

Virtual Bookkeeping Assistants in Italy

Virtual bookkeeping assistants provide comprehensive remote financial support for businesses in Italy, helping streamline accounting processes with efficiency and accuracy. They offer support across a wide range of tasks:

  1. Transaction Recording: Virtual assistants ensure that all transactions are accurately recorded and reconciled in accordance with Italian tax regulations, such as the Agenzia delle Entrate (Revenue Agency) guidelines for VAT and corporate income tax filings.

  2. Payroll Processing: Virtual assistants handle payroll, including deductions required by Italian law, such as social security contributions to INPS (National Institute of Social Security) and tax withholdings for employee salaries. They ensure that all payroll calculations are in compliance with Italian labor regulations.

  3. Tax Compliance: Virtual assistants help ensure that all tax filings, including VAT returns and corporate tax filings (IRES), are submitted according to Italy’s tax deadlines. They also keep track of any deductions, credits, and adjustments available to ensure optimal tax compliance and minimize liabilities.

Defining Your Bookkeeping Requirements in Italy

Before choosing a bookkeeper for your Italy-based business, it is important to clearly define your financial requirements. In Italy, businesses need to prepare financial statements that provide an accurate view of their financial performance and position in accordance with local laws. Key considerations include:

  1. Annual Financial Statements: Italian businesses must file balance sheets, profit and loss accounts, and directors' reports with the Registro delle Imprese (Business Register). These documents ensure compliance with Italian GAAP or IFRS, depending on the company’s size and structure.

  2. VAT Registration and Reporting: Businesses based in Italy or abroad must ensure proper VAT registration with the Agenzia delle Entrate (Revenue Agency) and timely VAT filings. Proper management of VAT is crucial for compliance with Italy’s VAT system, which aligns with EU directives.

  3. Corporate Tax Filing: Italian companies are required to file annual corporate tax returns with the Agenzia delle Entrate, detailing their taxable income and deductions. It is important to understand tax liabilities and deadlines to avoid penalties.

  4. EU and Non-EU Compliance: Both EU and non-EU businesses expanding into Italy need to be aware of local tax obligations, including the Italian VAT system and the corporate tax regime. Businesses must also stay informed about transfer pricing rules and other compliance measures as set by Italian tax laws.

Having a bookkeeper with expertise in Italian tax regulations ensures your business remains compliant, avoids penalties, and benefits from available tax deductions and credits.

Analyzing Cost-Effectiveness of Bookkeeping Services

Choosing a bookkeeping service in Italy is a balance between cost and the value of compliance, efficiency, and reliability. Businesses should assess the following cost-effectiveness aspects:

  1. Scalability: Look for bookkeeping services that can grow with your business, supporting both local operations in Italy and international expansion. This is particularly important for businesses dealing with cross-border VAT or those requiring multi-currency reporting.

  2. Technology Integration: Choose services that provide advanced accounting software without the overhead of maintaining in-house systems. Services that integrate with Agenzia delle Entrate (Revenue Agency) portals and support electronic invoicing can save time and reduce errors.

  3. Time Savings: By outsourcing bookkeeping tasks, business owners can focus on core activities such as sales and strategy, while ensuring that tax compliance and accurate financial reporting are handled professionally. This also helps reduce the need for internal accounting staff and associated costs.

  4. Risk of Non-Compliance: Minimizing the risk of financial penalties by ensuring timely and accurate filings in line with Italian tax laws and EU regulations. Failure to comply with VAT, corporate tax, and other regulations can result in heavy fines and reputational damage.

Choosing the right bookkeeping service ensures that your business remains compliant with Italian tax laws and EU directives, while also optimizing your resources for growth and efficiency.

 

Italy Bookkeeping Services for EU and Non-EU Countries

At House of Companies, we offer expert bookkeeping services not only for businesses based in Italy but also for EU and non-EU entities expanding into Italy. Our services include VAT registration, tax filings, payroll processing, and annual reports, all tailored to comply with Italian regulations. Whether you're a startup or an established business, we help you navigate the complexities of Italy's tax laws and ensure smooth operations across both local and international markets.

Are you struggling to find an accountant with fair prices and perfect services in Italy?

The legal input before starting a company in Italy seems never-ending, and the hourly charges appropriately high.

Difficulty deciding on the best corporate structure - and formation agents are often biased for the most expensive solution.

Experience with formation agents that don't provide real-time insights into your company responsibilities in Italy.

Popular Italian Accountants Services

Expanding to the Italian market has never been this easy. A one-stop-shop portal to deal with your new address, business, bank account, IVA ID, how to become an employer and so much more in Italy!


VAT number registration

We guide both EU and non-EU companies in obtaining their VAT number in Italy, ensuring smooth integration with the local tax system. Our expert services help businesses navigate the registration process, ensuring compliance with Agenzia delle Entrate (Revenue Agency) regulations. Whether you're setting up a new business or expanding into Italy, we provide support for timely and accurate VAT registration, making the process efficient and hassle-free.

 


Register as Employer

 

For businesses establishing a presence in Italy, we assist with registering as an employer, whether you are a local or international company. Our services help you navigate the registration process, including ensuring compliance with Italian labor laws, tax regulations, and social security contributions to INPS (National Institute of Social Security). This ensures that your business can start hiring employees smoothly and in full compliance with Italian employment regulations.

 


VAT Submission

 

Our subscription service allows businesses to file VAT returns directly with the Italian Revenue Agency (Agenzia delle Entrate) using a prepared VAT analysis, or we can submit on your behalf. This service ensures that your VAT filings are handled accurately and on time, fully compliant with Italy’s tax regulations. Whether you're a local business or expanding into Italy, we streamline the process to ensure efficiency and compliance.

 

 


VAT registration & Filing for e-commerce traders

 

Register your non-domestic company as an employer in Italy without hefty fees or the need for local company formation! Our services allow businesses to expand into Italy easily, handling employment registration, payroll processing, and tax compliance efficiently. You can navigate Italian labor laws and ensure smooth operation without the administrative burden of setting up a full local entity.

 

Hear what others have
to say about our Dutch Accountants

"House of Companies made navigating Italy’s accounting regulations so much easier for my business. Their expertise in tax filing and financial reporting is unmatched."

Global Talent Recruiter

"I’ve been using their accounting services for over a year now, and I’m impressed by how they handle my VAT filings and annual financial reports. They truly take the stress out of accounting."

Spice & Herbs Export

"We’ve expanded our operations into Italy, and House of Companies made it seamless by handling our financial reports and ensuring our taxes are filed correctly."

IT Firm

Looking for personal support by an Italian Tax Advisor or Accountant?

Your circumstance may actually call for the assistance of a local tax professional, given the complex nature of Italian tax and accounting regulations. If you need help filing your tax return with the Agenzia delle Entrate, House of Companies is here to help.

Advantages of Our Italy Accounting Compliance


Get 100% compliant with Italian tax regulations.


REAL personal support by experienced tax officers familiar with Italian tax laws.


Our team can file your tax returns on your behalf with the Agenzia delle Entrate.

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Frequently Asked Questions

What types of accounting services does House of Companies offer for businesses in Italy?We offer a comprehensive range of services, including financial reporting, VAT registration and filing, corporate tax filing, payroll processing, and annual financial statements.
Do I need to hire an accountant in Italy for tax filings?While it is not mandatory to hire an accountant, we recommend it to ensure compliance with Italy’s complex tax laws and regulations. Our expert accountants can handle your filings efficiently.
How does House of Companies ensure compliance with Italian tax laws?We stay up-to-date with the latest Agenzia delle Entrate regulations, ensuring that your tax filings, including VAT and corporate taxes (IRES), are submitted accurately and on time.
Can House of Companies help with financial reports for both small and large businesses in Italy?Yes, our services cater to businesses of all sizes, ensuring tailored financial reporting that meets Italian GAAP or IFRS requirements for large companies.
How can House of Companies help with VAT registration in Italy?We assist businesses in both EU and non-EU countries with VAT registration in Italy, ensuring smooth integration with the Agenzia delle Entrate systems.
What are the deadlines for filing corporate tax returns in Italy?Corporate tax returns must be filed within 11 months of the end of the financial year. Extensions are possible under specific circumstances.

Wherever I pay tax,
that’s my home.

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