How to Calculate Duties and Taxes on Imports to Italy

How to Calculate Duties and Taxes on Imports to Italy is a critical step for international trade compliance. Import duties and taxes, primarily the Value Added Tax (IVA), are determined by the product's classification (HS Code), its customs value, and its country of origin. Italy, following EU law, applies a duty de minimis threshold of €150, meaning shipments below this value are exempt from customs duties. However, the tax de minimis threshold is €0, so all commercial imports are subject to IVA, which is managed by the Agenzia delle Dogane e dei Monopoli (ADM).

Import duties in Italy are governed by the European Union’s Common Customs Tariff (CCT). The duty rate is an ad valorem percentage applied to the customs value of the goods. The specific rate is determined by the product’s classification under the EU’s integrated tariff, known as TARIC (Tarif Intégré des Communautés Européennes). This system uses a 10-digit code structure, which extends the global 6-digit Harmonised System (HS) and the 8-digit Combined Nomenclature (CN) to incorporate all EU-specific measures, such as anti-dumping duties, tariff suspensions, and quotas. Correct classification using the 10-digit import code is the foundational step for accurate duty calculation.

To accurately calculate import tax in Italy and determine the total landed cost, importers must first establish the Customs Value. Italy, as an EU member, adheres to the World Trade Organization (WTO) Customs Valuation Agreement, which primarily uses the Transaction Value Method. For imports, this value is based on the Cost, Insurance, and Freight (CIF) to the first point of entry into the EU. This means the dutiable value includes the price paid for the goods, plus the cost of international freight and insurance up to the EU border.

Once the Customs Value is established, the calculation of customs duties in Italy proceeds. If the shipment’s value exceeds the Duty De Minimis Threshold of €150, the applicable TARIC duty rate is applied to the CIF value. If the goods originate from a country with which the EU has a Free Trade Agreement (FTA), a preferential or zero duty rate may apply, provided the correct proof of origin is supplied.

Next, the local import taxes are calculated. The main import tax is the Imposta sul Valore Aggiunto (IVA), or Value Added Tax. The standard Italy VAT rate is 22%, though reduced rates of 10%, 5%, and 4% apply to specific categories of goods (e.g., certain foodstuffs, books, and pharmaceuticals). Crucially, the Tax De Minimis Threshold is €0, meaning IVA is due on virtually all commercial imports, regardless of value. The IVA is calculated on the sum of the Customs Value (CIF), the Customs Duty, and any other charges or excise duties. This comprehensive calculation is essential for any business seeking an accurate import tax calculator Italy estimate.

For low-value B2C shipments (up to €150), the Import One Stop Shop (IOSS) regime simplifies the process by allowing the seller to collect and remit the IVA at the point of sale, which facilitates faster customs clearance in Italy.

Italy’s customs procedures are highly digitised, with declarations submitted through the ADM’s systems, aligning with the EUCDM and using the Master Reference Number (MRN) for tracking. The Sportello Unico Doganale e dei Controlli (SUDOCO) acts as a Single Window for customs and controls. For B2C eCommerce, the Import One Stop Shop (IOSS) is the preferred method for shipments up to €150, allowing the seller to charge and remit the 22% IVA at the point of sale, ensuring a smoother and faster customs clearance process in Italy. Additionally, specific Italian territories, such as Livigno, are designated as duty-free areas and are outside the scope of standard EU VAT rules.