Companies established outside the European Union and the European Economic Area that operate in Italy through a fiscal representative and intend to carry out intra-EU transactions must provide an eligible guarantee in order to be included in the VIES system.
The applicable rules require a minimum guaranteed amount of €50,000 and a minimum duration of 36 months. The guarantee may be provided in the form of a deposit in Italian government securities or government-guaranteed securities, a bank guarantee, or an insurance surety bond.
A new episode of the podcast “La Fideiussione”, produced by Italiafideiussioni.it, is now online. The episode focuses in particular on the insurance solution and compares it with alternatives that may require a company to tie up substantial amounts of capital.
What We Cover in This Episode
- Why tying up €50,000 for three years can have a significant impact on a company’s liquidity
- How the insurance solution described in the episode can meet the VIES guarantee requirement without tying up €50,000 in capital
- Why an insurance surety bond is one of the forms of guarantee expressly permitted under the applicable rules
- The four documents required for underwriting the insurance solution described in the episode, and what a recently incorporated company may provide when it does not yet have an established sales history
- How anti-money laundering documentation is handled for non-EU companies
- Indicative timelines for underwriting and issuance of the solution described in the episode
For a non-EU company, the difference is not merely formal. Tying up €50,000 for three years can mean taking resources away from inventory, suppliers, business development, or marketing activities.
This is the central issue explored in the new episode: how the VIES insurance surety bond works and what advantages it may offer, in terms of liquidity management, compared with solutions that require capital to be tied up.
Listen to the Full Episode
For the full text of the episode, visit the podcast page on Italiafideiussioni.it.