In recent days, we’ve seen a sharp rise in questions from non-EU businesses seeking clarity around Italy’s controversial €50,000 financial guarantee requirement for VIES registration.
If you’ve read our previous articles, “Italy’s €50,000 VAT Guarantee Under Constitutional Scrutiny and Italy Suspends €50,000 VAT Guarantee Requirement – A Key Turning Point” you’ll know that a Chinese company formally challenged the constitutionality of the €50,000 guarantee, arguing it was both discriminatory and disproportionate. That legal challenge led to a significant response from the Consiglio di Stato (Council of State), which granted a precautionary suspension of the guarantee requirement for that specific company only.
We explored the implications of this case, including its potential ripple effects across the broader non-EU business community and the legal uncertainty it introduced for everyone else still navigating the rule.
Now, with Il Sole 24 Ore , Italy’s leading financial and legal newspaper—covering the case, it’s important to cut through the noise and clarify what has actually changed, what hasn’t, and what non-EU companies should be doing now.
What Did Il Sole 24 Ore Report?
In its 12 July 2025 edition (Norme & Tributi), Il Sole 24 Ore confirmed the essential facts. The article, titled:
“Stop alla cauzione anti-frode per le vendite online”
(“Halt to the anti-fraud guarantee for online sales”)
…explains that the Consiglio di Stato, in Decision No. 7333/2023, issued a precautionary suspension of Decree 885/2023 in response to a legal challenge brought by a Chinese company. The appeal claims that the guarantee imposes a disproportionate burden and discriminates against non-EU entities—particularly e commerce sellers operating through platforms like Amazon.
The article notes:
“Secondo le aziende cinesi ricorrenti, la misura anti-evasione è discriminatoria e sproporzionata.”
(“According to the Chinese companies bringing the appeal, the anti-fraud measure is discriminatory and disproportionate.”)
The suspension applies only to the case under review and was granted pending the outcome of a full constitutional assessment.
Has the Law Been Suspended?
This is the key point, and one that has caused considerable confusion.
What has been suspended:
The €50,000 guarantee requirement has been temporarily frozen only for the company that filed the appeal. It is a case-specific ruling.
What has not been suspended:
• The law itself remains active and unchanged.
• The Agenzia delle Entrate (ADE) has not withdrawn or modified its enforcement guidance.
• All other non-EU companies applying for VIES registration are still required to provide the guarantee, unless and until the law is officially amended or overturned.
Recent headlines and social media commentary have caused many to mistakenly believe that the requirement no longer applies or that ADE has paused enforcement. This is not correct. ADE does not legislate—it implements existing rules. Until formal legislative or regulatory changes are published, enforcement will continue.
Our Own Experience – And Why This Matters
Over the past few months, we’ve worked closely with clients, and dealt with the requirement ourselves. What we observed is consistent:
• Very few international banks are able to issue a financial guarantee in the format required under Italian law.
• Most insurers outside of Italy are not in a position to issue a compliant bond unless they are part of the Italian financial system or operate through a licensed Italian branch.
• Even with a strong network in Italy, securing a valid guarantee involved extensive due diligence and long lead times.
Despite this, we have now developed a clear and reliable process for obtaining guarantees that meet the standard. We are actively supporting clients through this process.
What Should You Do Now?
If your company has not yet received a formal request from ADE:
- You may consider delaying submission, with reference to the pending constitutional challenge.
- Your fiscal representative may submit an appeal to ADE requesting suspension of enforcement until a final ruling is issued.
However, there is no guarantee ADE will accept this approach. The agency is under no obligation to pause enforcement and may continue to request the guarantee.
If your company has received a formal request:
- You are typically granted a 60-day period to comply.
- Failure to submit the guarantee within this window will not invalidate your VAT registration, but it will result in removal from the VIES database.
This has direct implications:
- You will lose the ability to issue intra-EU B2B invoices without VAT (zero-rated).
- You may become ineligible for important cross-border programs, such as Amazon’s Pan-EU FBA.
You should also consider how ADE notifications are delivered. If your representative receives notices by post, there is a risk the deadline has already begun. If notices are delivered via PEC or Entratel/ Fisconline, these channels must be monitored regularly.
Final Remarks
The legal action brought by the Chinese company represents a potentially significant turning point—but it does not, at present, change the obligations of other non-EU companies.
The €50,000 guarantee requirement remains active and is still being enforced. And for businesses seeking VIES registration in Italy, it remains a key hurdle that should not be underestimated.
We will continue to monitor the legal case as it progresses. In the meantime, if your company is impacted by this rule and needs assistance obtaining a compliant guarantee, we are here to help.
FAQ – Key Questions About the €50,000 Guarantee for VIES in Italy
1. Has the €50,000 guarantee been suspended?
No. It has been suspended only for the specific Chinese company that filed a legal appeal. For all other non-EU businesses, the rule is still fully in force.
2. Can I register for VIES without submitting the guarantee?
Only if you have not yet received an official request from the Italian Tax Authority. In that case, your representative may consider requesting a temporary suspension, but there is no guarantee it will be accepted.
3. What happens if I don’t submit the guarantee within 60 days?
You will not lose your VAT number, but your business will be removed from the VIES database, meaning you cannot issue intra-EU B2B invoices without VAT.
4. Can I use a foreign bank or insurance guarantee?
Only if it is fully compliant with Italian regulations. Most foreign institutions cannot issue guarantees that meet the required standard.
5. Will the Italian Tax Authority continue to enforce the rule?
Yes. Unless the law is officially amended or repealed, the Italian Tax Authority is required to continue enforcement.
6. What should businesses do now?
Evaluate the situation with your fiscal representative and begin preparing a compliant guarantee as soon as possible to avoid delays or complications.