Foreign companies that want to operate in Italy often face one of the most important compliance steps: obtaining authorization to issue VAT-valid invoices. To legally sell products or services in Italy through a Fiscal Representative, every non-EU or non-EEA business must be registered in the VIES system. Without VIES authorization, a foreign company cannot operate in the Italian market.
The Italian Revenue Agency requires a three-year financial guarantee to approve VIES registration.
This bond must comply with Italian Revenue Agency Provision No. 178713/2025 and Article 35, paragraph 7-quater of Presidential Decree 633/1972.
The guarantee is mandatory for all non-European companies that choose to appoint a Fiscal Representative in Italy.
What Is the VIES Financial Guarantee
The VIES Financial Guarantee is a bond issued by a licensed insurance company or financial institution. Its purpose is to protect the Italian Tax Authority if the foreign company generates VAT debts or commits tax violations through its Fiscal Representative.
If the foreign company fails to meet its tax obligations, becomes unreachable, or stops operating, the guarantor pays the Italian Revenue Agency the amount due. Without this guarantee, VIES registration cannot be granted.
Without the VIES Guarantee Bond:
you cannot complete your VIES registration in Italy
you cannot be fully enabled for Italian VAT
you cannot issue valid VAT invoices to Italian clients for intra-EU transactions
Who Must Provide the VIES Guarantee
The VIES financial guarantee is required for:
- Foreign companies based outside the European Union
- Foreign companies based outside the European Economic Area
- Businesses operating in Italy through an appointed Fiscal Representative
- Non-resident companies applying for VIES registration to sell goods or services in Italy
Companies based in the European Union using direct VAT identification do not need this guarantee.
Which Solution Fits Your Company?
Best when you have an Italian co-obligor and want the lowest cost.
- Your fiscal representative, Italian director, or an Italian company is willing to act as co-obligor.
- You want to avoid blocking €50,000 of capital in a bank deposit or policy.
- You prefer a fixed, all-inclusive premium for the full 36-month period.
Avoid this option if:
- You do not have any Italian person or company willing to act as co-obligor.
- Your group policy does not allow personal or corporate guarantees in Italy.
- You prefer to provide collateral (cash or a policy) instead of using a co-obligor.
Best when you do not want to use a co-obligor and can block €50,000 in cash.
- Your fiscal representative or directors are not willing to act as co-obligor.
- You can block €50,000 in a dedicated cash deposit for the duration of the guarantee.
- You want a classic, straightforward bank-issued guarantee fully accepted by Italian Tax Offices.
Avoid this option if:
- You cannot freeze €50,000 of cash for at least 36 months.
- Keeping liquidity available is more important to you than avoiding a co-obligor.
- You prefer to use a life-insurance-based collateral structure instead of a direct cash deposit.
Best when you want to stay VIES-compliant without freezing €50,000 for three years.
- You want to avoid cash collateral and do not want to freeze €50,000.
- Your company has a clean VAT history with proper F24 payments.
- You need a fast, sustainable solution accepted by the Italian Tax Authority.
Avoid this option if:
- Your company has less than 24 months of history with a Fiscal Representative.
- You cannot provide VAT/F24 compliance documentation.
- You need a guarantee issued outside the shared insurance agreement.
Best when you have no co-obligor but do not want to open an Italian bank account.
- You do not have any Italian co-obligor available.
- Your Italian fiscal representative is willing to handle the funds and subscribe the life insurance policy.
- You prefer to use a pledged life insurance policy as collateral instead of a bank cash deposit.
Avoid this option if:
- You are not comfortable transferring €50,000 to your Italian fiscal representative to fund the policy.
- You cannot immobilise €50,000 for the full duration of the guarantee.
- Your fiscal representative cannot or does not want to manage a life insurance policy on your behalf.
Counter-Guarantee Requirements
A counter-guarantee may be required depending on the type of VIES guarantee chosen.
- A co-signer based in Italy
- A life insurance policy used as a financial guarantee
- A cash collateral deposit
These instruments protect the guarantor and ensure that the foreign company’s obligations are fully secured.
What the VIES Guarantee Covers
The VIES Financial Guarantee protects the Italian Revenue Agency against:
VAT debts created through the Fiscal Representative
Tax irregularities linked to transactions in Italy
Any obligations arising from the actions or omissions of the appointed Fiscal Representative
The beneficiary is always the local office of the Italian Revenue Agency handling the VIES registration request.
Duration and Release of the VIES Guarantee
The VIES guarantee has a mandatory duration of thirty-six months. It cannot be shortened or altered.
The bond is automatically released at the end of the three-year period unless the Italian Revenue Agency reports ongoing checks or unresolved tax issues.
The foreign company does not need to request the release. The process is automatic.
Available Solutions for VIES Financial Guarantees
Three professional options exist for foreign companies:
based VIES Guarantee
Requires an Italian co-obligor
For example your fiscal representative or an Italian company/director.
Fastest Issuance (3–4 Days)
A fixed €1,500 premium for the entire 36-month period — no hidden fees.
Lowest Cost on the Market
Ideal when you must activate your VIES VAT status quickly.
No Cash Deposit Required
No Cash Deposit Required — no frozen funds, no blocked capital.
The Strongest Traditional Option
Preferred by companies that want a classic bank-issued guarantee.
No Personal or Corporate Guarantees Needed
The €50,000 cash deposit replaces the need for any co-obligor or personal guarantees.
Fully Accepted by All Italian Tax Offices
The deposit is held as collateral for the entire guarantee period and released at the end if there are no tax issues.
No Cash Deposit Required
Avoid freezing €50,000 for 36 months — no blocked funds, no collateral needed.
Ideal for Fully Compliant Companies
Works for businesses with a clean VAT history and reliable F24 payment behaviour.
Fully Accepted by All Italian Tax Offices
A fast, sustainable insurance-based VAT guarantee with cost proportional to turnover.
No Italian Co-Obligor Needed
Perfect if your Fiscal Representative cannot act as co-guarantor.
Strong Bank-Issued Security
A guarantee backed by a financial institution, fully compliant with Italian law.
Collateral via €50,000 Life Insurance Policy
€50,000 are used to fund a single-premium life insurance policy pledged as collateral for the guarantee – no need to open an Italian bank account, but the amount remains tied up for the duration of the guarantee.
Each option has different requirements, costs, issuance times, and counter-guarantee mechanisms.
Need Help Choosing Your VIES Guarantee?
You can contact us in several ways:
Write an email:
info@italiafideiussioni.itOr call one of our offices:
+39 055 28 53 13 +39 02 667 124 17You can also contact us via:
WhatsApp +39 339 71 50 157
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