VIES Guarantee for U.S. and Canadian Companies: A Practical Guide for North American Operators

If your company is based in the United States or Canada and you want to trade inside the European Union through Italy, sooner or later you will meet a specific Italian requirement: the VIES guarantee. Being listed in VIES (the EU database that lets a business issue and receive intra-community invoices without VAT) is what makes cross-border trade within the EU possible. For a company established outside the EU, the Italian Revenue Agency now asks for a financial guarantee of 50,000 euros before it will keep that registration in place.

This guide is written for North American operators: founders of U.S. startups, Canadian corporations expanding into Europe, and the fiscal representatives who manage their Italian compliance. It explains what the VIES guarantee is, why it applies specifically to companies outside the EU, and how you can put it in place from across the Atlantic with an insurance-based surety, without locking up cash, and in most cases without travelling to Italy.

Why a U.S. or Canadian company needs a VIES guarantee in Italy

VIES (the VAT Information Exchange System) is the EU-wide register that confirms a business is authorised to make intra-community supplies. Without it, you cannot issue zero-VAT invoices to EU customers, and every transaction with an EU company is treated as a domestic sale subject to Italian VAT. In practice, a company that is not in VIES is shut out of the EU market for cross-border trade.

For companies established outside the EU and the European Economic Area, which includes every U.S. and Canadian entity, Italy treats VIES access as a higher-risk situation. The requirement was introduced by Legislative Decree 13/2024, which added paragraph 7-quater to Article 35 of Presidential Decree 633/1972 (the Italian VAT law), with operational criteria set by the Ministry of Economy decree of 4 December 2024 and the Revenue Agency ruling of 14 April 2025. The measure exists to protect public revenue against VAT fraud carried out through shell structures.

The obligation applies to non-EU companies that operate in Italy through a fiscal representative and want to obtain or keep VIES registration. The guarantee must cover at least 50,000 euros and stay valid for a minimum of 36 months. It was challenged in court and then upheld: the Lazio Regional Administrative Court, with decision 4986/2026, confirmed that the requirement is legitimate.

What the VIES guarantee actually is, and what it is not

The VIES guarantee is an insurance-based surety bond (in Italian, polizza fideiussoria assicurativa): a guarantee issued by an insurance company in favour of the Italian Revenue Agency. If the guaranteed company were ever assessed for unpaid VAT up to the covered amount, the insurer would answer for it and would then have a right of recourse against the company.

It is not a bank guarantee. A bank guarantee is issued by a credit institution; the insurance-based surety is issued by an insurance company supervised by IVASS, the Italian insurance authority. The two are legally distinct instruments, even though here they serve the same purpose. Italian rules accept different forms of guarantee for VIES (a cash deposit, a bank guarantee, or an insurance surety); the insurance route is the one we issue.

The practical difference for you is straightforward: with the insurance-based surety your company does not lock 50,000 euros of its own money in an Italian account. Your capital stays in your treasury, the insurer provides the guarantee in favour of the Revenue Agency, and you pay a premium for it.

The real obstacles for operators based in North America

North American companies usually hit a few points of friction that an EU company does not. None of them is a wall: each has a standard, lawful solution.

• No Italian tax code (codice fiscale) yet. Most non-EU directors do not have one at the start, and several Italian procedures assume you do.
• Distance and time zones. The Revenue Agency, insurers and notaries work on Central European Time, and some steps were traditionally expected to be signed in person in Italy.
• The fiscal representative question. A non-EU company usually appoints an Italian fiscal representative for VAT; understanding how that role connects to the guarantee avoids duplicated work.
• Document formats. Powers of attorney, certificates of incorporation and signatures issued in the U.S. or Canada often need to be apostilled and translated to be accepted in Italy.

The next sections walk through how each of these is handled, so the process is predictable rather than improvised.

How the process works, step by step, from the U.S. or Canada

A typical file follows the same sequence, whether you start from New York, Toronto or San Francisco:

1. Confirm you actually need VIES and the guarantee for your activity. A fiscal representative, or our team, can assess this in a short call before any cost is incurred.
2. Appoint your Italian fiscal representative for VAT, if you have not already, since the guarantee requirement is tied to operating through a representative.
3. Gather the corporate documents (certificate of incorporation, proof of the signatory powers), apostilled and translated where required.
4. Apply for the insurance-based surety. The insurer assesses the company and issues the 50,000 euro guarantee in favour of the Revenue Agency, valid for at least 36 months.
5. Sign remotely. The guarantee and the related powers of attorney can be signed from abroad, without an Italian tax code, using legally recognised methods. You do not have to fly to Italy.
6. The fiscal representative files the VIES registration with the guarantee attached, and the registration is kept active.

The fiscal representative and the guarantee: how they fit together

A fiscal representative is the Italy-resident party that handles your VAT obligations and is jointly liable for them. Most non-EU companies need one to operate in Italy, and, as noted, the VIES guarantee requirement applies precisely to companies that work through a representative.

The two things run in parallel rather than overlapping. The representative manages your VAT position; the guarantee satisfies the Revenue Agency security requirement for VIES. Setting both up at the same time, with one advisor coordinating, is usually the fastest route. If you already have a fiscal representative, they can request the guarantee on your behalf once they hold the right power of attorney.

Costs and timing: what to expect

The cost of the insurance-based surety is a premium, calculated as a percentage of the 50,000 euro guaranteed sum, not the full 50,000. This is a real, disclosed cost, and it is separate from any fee charged by your fiscal representative. The exact premium depends on the insurer assessment of the company.

It helps to compare this with the alternative of depositing 50,000 euros in cash. That deposit is not money you “lose”, but it ties up capital you could otherwise use in your business, and that tied-up capital carries an opportunity cost for the full duration of the guarantee. The insurance route leaves your working capital free.

Timing depends mostly on how quickly the corporate documents are collected and legalised. Once the file is complete, the guarantee itself is issued within a short, defined window, and your fiscal representative can proceed with the registration.

Frequently asked questions

Does a U.S. LLC or a Canadian corporation have to register for VIES in Italy?

If you carry out intra-community transactions through an Italian VAT position, VIES registration is what authorises them. For a non-EU company operating through a fiscal representative, the 50,000 euro guarantee is the condition the Revenue Agency sets to grant or keep that registration.

Can we obtain the guarantee without an Italian tax code and without travelling to Italy?

Yes. The surety and the related powers of attorney can be signed remotely from abroad using legally recognised methods, so neither an Italian tax code held in advance nor a trip to Italy is required to start.

Are the 50,000 euros money we lose?

No. With the insurance-based surety you do not deposit 50,000 euros at all; you pay a premium. The guaranteed sum is only ever called upon by the Revenue Agency in the case of an assessed and unpaid VAT debt, and the insurer would then have recourse against the company.

Do we also need a fiscal representative?

Yes, and the guarantee obligation is tied precisely to operating through a fiscal representative. The representative and the guarantee are complementary, not alternatives.

How long does the whole process take from North America?

The main variable is collecting and legalising the corporate documents. Once the file is complete, the guarantee is issued within 5 days, a defined timeframe, and the registration can proceed.

Summary

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Cover photo: Haris Illahi on Unsplash