Partita IVA and moving abroad: close it or keep it?

By Andrea Matera, Dottore Commercialista and Chartered Accountant (ICAEW, ACCA) · Updated 22 October 2026

VAT and invoicing Italian clients from abroad

• For general B2B services supplied by a foreign supplier to an Italian business, VAT is due from the client under the reverse charge (arts 7-ter and 17, para. 2, Presidential Decree 633/1972): you invoice without Italian VAT and do not need a Partita IVA in Italy.
• The exceptions are certain supplies whose place of supply is Italy and which are not subject to the reverse charge, for example services relating to property located in Italy supplied to private individuals. In these cases you need direct VAT identification (art. 35-ter Presidential Decree 633/1972, for EU businesses) or a tax representative (art. 17, para. 3, Presidential Decree 633/1972). For electronic services supplied to private individuals in Italy, you can use the One-Stop Shop (OSS).

Forfettario while resident in another EU country

The forfettario regime remains available to residents of another EU or EEA state that ensures an adequate exchange of information, but only if at least 75% of their income arises in Italy (art. 1, para. 57, letter b, Law 190/2014). If you move to Switzerland, the United Kingdom, the United States or Australia, the forfettario is no longer available.

Closing a Partita IVA: timing and rules

• Closure must be notified to the Italian Revenue Agency within 30 days of ceasing the activity (art. 35, para. 3, Presidential Decree 633/1972).
• For professionals, the activity is not regarded as ceased until all fees have been invoiced and collected, including outstanding bills not yet paid (Cass. SS.UU. no. 8059/2016).
• Fees for services performed in Italy remain taxable in Italy, and a client acting as withholding agent applies 30% withholding tax (art. 25, para. 2, Presidential Decree 600/1973), unless a treaty provides otherwise. If the service is performed entirely abroad, the income is not Italian-source (art. 23, para. 1, letter d, TUIR).

Social security contributions and permanent establishment after moving

• Within the EU, contributions are as a rule paid in the country where you work (Regulation (EC) 883/2004); if you work in more than one state you need an A1 certificate.
• With the United Kingdom (the Protocol on Social Security Coordination of the EU–UK Agreement), the United States, Canada, Australia and other countries, bilateral social security agreements apply.
• If you keep an office or another fixed place of business (permanent establishment) in Italy, the income attributable to it remains taxable in Italy (art. 162 TUIR).

Risks of mishandling your Partita IVA when you move

• Leaving the Partita IVA open without meeting the requirements: compliance obligations, penalties and disputes.
• Keeping an office or a fixed place of business in Italy and remaining taxable in Italy.
• Paying contributions in two countries.

How we handle your Partita IVA when you move abroad

• Before you leave, we assess whether to close, keep or restructure your business.
• We set up invoicing and VAT for your Italian clients from your new country.
• We coordinate contributions, withholding tax and residence to avoid double taxation.

Frequently asked questions

General information, current as of 22 October 2026: it is not a substitute for advice on your own case.