Who is Required to Provide a VIES Guarantee

What is VIES? Explained Simply

Imagine an Italian shop wants to sell to a French shop. Normally, it has to add VAT (a tax) to the invoice. But if the French shop is in Europe, it doesn’t have to pay VAT — this is a rule that only applies to buyers inside Europe.

VIES is a giant list where all European companies authorized to sell things without VAT are registered. If a company is not on this list, it cannot sell without VAT — it’s as if the company is not allowed to play in the European market.

If a company is not registered in VIES, it cannot:

• Send invoices without VAT to European customers
• Receive invoices correctly from European suppliers
• Operate normally in Europe

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Why is a Guarantee Required Today?

A few years ago, registering with VIES was easy — you just had to make a request and it was done. Today, it’s different.

The problem? Italian authorities discovered that many foreign companies would register with VIES, make lots of sales, not pay VAT, and then disappear. For Italy, this is a huge loss of money.

The solution? Today Italy asks foreign companies: “Before you register, prove that you are reliable. And to prove it, give a guarantee of €50,000.“

Who is Required to Provide This Guarantee?

The rule is simple: if your company is not in the European Union or the EEA (which is a special zone with some non-EU European countries), then the guarantee is mandatory.

This means companies from:

• USA
• China
• India
• Turkey
• Switzerland
• Great Britain (since Brexit)
• And any other country outside the EU

…must provide the guarantee if they want to operate in Italy and sell in Europe without VAT.

In Italy, however, you need an Italian person to handle tax obligations. This person is called a “fiscal representative“. The guarantee protects the Italian State, not the fiscal representative.

Amount and Duration — No Room for Negotiation

The amount is fixed: €50,000. It cannot be reduced, it cannot be negotiated, it does not change based on how much you sell.

The minimum duration is 3 years — that is, 36 complete months from the date of submission of the VIES Insurance Guarantee. It is not possible to have a guarantee for 2 years or 1 year.

What is the Simplest Solution?

Until recently, the only solution was to deposit €50,000 in an Italian bank, lock it in for 3 years, and wait 2-4 weeks for the response. It was complicated and blocked a lot of money.

Today there is an alternative: the VIES insurance guarantee.

Deadlines for Those Already Registered

If your company was already registered with VIES before 14 April 2025, you have an important deadline.

You must submit the guarantee as soon as possible, before you receive an official notice from the Italian Revenue Agency.

If you don’t submit it:

• You will receive an official communication from the Italian Revenue Agency
• You will have another 60 days to remedy the situation
• If you continue to not submit it, you will be cancelled from VIES

What Happens If You Don’t Submit

The consequences are serious and come quickly:

• You are cancelled from VIES
• You can no longer issue invoices without VAT
• Your European customers will stop doing business with you (because invoices will no longer be valid)
• Your activity with Europe comes to a complete stop

Documents You Need to Prepare

To get the guarantee, you need to prepare these documents:

• Power of attorney translated, signed and certified by your Italian fiscal representative
• Identity document of the company owner
• Certificate of registration of your company (in your country)
• Articles of association and bylaws of your company
• AML (Anti-Money Laundering) and UBO (Ultimate Beneficial Owner) report stating who the real owner is (anti-money laundering rule)

How Long Does Issuance Take?

Once you have the documents ready:

• Insurance verification: a few business days
• Issuance of the guarantee: fast if documentation is complete, just 5 days.

The risk of delays? Always just one: incomplete or non-compliant documentation. If you prepare everything properly, you won’t have problems.

Summary

Registration with VIES is no longer just a formality. It is a real step that requires planning and action.

Those who act quickly remain operational. Those who wait too long risk completely blocking their activity in Europe.

The solution? An insurance guarantee in 5 days. Without it, you cannot operate in Europe.

Regulatory References

Italian Revenue Agency Decree of 14 April 2025

Article 35, paragraph 7-quater of D.P.R. 633/1972

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