Italy imposes Value Added Tax (VAT) at different rates as follows for various goods and services.
The standard VAT rate is applicable to all taxable goods and services in Italy, except when a specific measure allows for a reduced rate.
Some foodstuffs; water supplies; some pharmaceutical products; domestic passenger transport; admission to cultural events; hotel accommodation; restaurants; admission to certain sports events; take away food; cut flowers and plants for decorative use and food production.
Some foodstuffs; some social services; certain passenger transport.
Some food products; certain medical equipment for disabled persons; certain books; newspapers and some periodicals; e-books with an international standard book number (ISBN); online journals newspapers.
Intra-community and international transport
Source: https://www.agenziaentrate.gov.it/portale/web/english/nse/business/vat-in-italy
Employees of companies traveling for business may be entitled to per diem allowances, as outlined below:
| Type | Domestic | Abroad |
| Business trip | €46,48 | €77,47 |
| Meals and lodging | €30,99 (2/3) | €51,65 (2/3) |
| Meals or lodging | €15,49 (1/3) | €25,82 (1/3) |
It is also possible to reimburse travel expenses in accordance with the bills reported by employee and other expenses, as tips, detailed in the summary list, even if no bill or receipt is provided. Such undocumented expenses can be reimbursed tax free up to €15,49 per day for business trip in Italy and €25,82 per day for business trip outside Italy.
There are no time deductions. Even if the business travel abroad lasts less than 8 hours a day, the total allowance is treated as described above.
For employees who are bound by agreement to work to different places, it is possible for the employer to grant them an allowance (with no cap) that is considered tax free up to 50% of the amount.
With the amendments made by Legislative Decree no. 84/2025 to Article 51, paragraph 5, of the Consolidated Income Tax Code (TUIR), the obligation to track expenses for food, lodging, travel, and transportation via non-scheduled public transport for employees will only apply to business trips within Italy.
With response no. 188/2025, the Revenue Agency confirmed that expense reimbursements for missions and trips abroad remain tax-free even if the expenses were paid using untraceable instruments, such as cash, as long as they are duly documented.
A meal voucher can be provided at €5,29 maximum.
An employer in Italy can reimburse employees for using a personal vehicle for business journeys, e.g., client visit. Reimbursements for business journeys within the municipality of the company’s office are considered part of the employee’s taxable income. In case the business journey is outside the municipality of the place of work, the reimbursement is not part of the taxable income up to a certain amount. These maximum amounts are calculated based on the ACI tables and depend on the specifics of the vehicle (such as brand and fuel type).
The employer can decide to pay a higher rate per kilometer, however, the part exceeding the defined rates will be considered part of the employee’s taxable income.
Source: https://www.gazzettaufficiale.it/eli/id/2023/12/22/23A06840/sg
Italy has specific rules for the digital preservation (conservazione sostitutiva) of documents, including invoices. These are based on:
Codice Civile (Italian Civil Code)
D.lgs. 82/2005 – Codice dell’Amministrazione Digitale (CAD)
Regulations by AgID (Agenzia per l’Italia Digitale)
These laws allow paper documents to be destroyed only after they have been digitised and preserved according to strict legal procedures.
Conditions for Destroying Paper Invoices
To destroy paper invoices legally in Italy after digitising them:
1. Digital Copy Must Be Faithful and Durable
2. Electronic Signature (the digital invoice must be signed with a qualified electronic signature).
3. Time Stamp (apply a qualified timestamp to certify the date and time of the digital copy)
4. Preservation in a Compliant System (the documents must be stored using a certified digital preservation system compliant with AgID rules (e.g., using a third-party provider or an in-house system). The conservazione sostitutiva process must follow a specific Preservation Manual (Manuale della Conservazione).
Source: https://www.agid.gov.it/it/ambiti-intervento/gestione-documentale