Opening an e-commerce without VAT number in 2025: is it legal in Italy?

Have you ever thought about selling products online without opening a VAT number? Perhaps to test an idea or supplement the earnings of your physical store? In Italy, the answer is not so straightforward. The idea of an e-commerce business without a VAT number might seem like an unattainable dream, especially for those running a small or medium-sized business who want to avoid costs and bureaucratic complications. Yet, there are exceptions that could make this option not only possible but also advantageous.

Before diving into the world of online selling without a VAT number, however, it is crucial to understand when and how this choice is legal, what the concrete advantages are for your company, and, above all, what risks you might encounter along the way.

The Legal Dilemma

In Italy, the VAT number is often seen as an unavoidable obligation for anyone wanting to sell online. And in many cases, it truly is. Italian tax legislation is clear: if you conduct a commercial activity in a continuous and organized manner, you must open a VAT number. This applies both to those with a physical store and to those who decide to launch an e-commerce business without a VAT number.

However, there are exceptions that few know about. For example, if your activity is occasional or marginal, you might not need to open a VAT number. The law provides for an annual threshold of €5,000 for those selling goods or services in a non-professional manner. This means that if your turnover remains below this threshold, you could operate without a VAT number.

But be careful: it's not as simple as it seems. The Revenue Agency pays close attention to those trying to exploit these exceptions. If your online selling of products without a VAT number occurs regularly, with a structured organization (for example, a professional e-commerce website or a constant presence on social networks), you risk being considered a professional seller, even if your turnover is low.

In short, the line between occasional and professional activity is thin, and understanding where it lies is crucial to avoid penalties or legal problems.

When You Can Avoid the VAT Number

So, when is it truly possible to start an e-commerce business without a VAT number without running into problems with the tax authorities? The answer depends on two key factors: the nature of your activity and the volume of business you generate.

Let's take the example of Maria, an artisan who creates hand-painted ceramics in her spare time. Maria never thought of turning her passion into a full-time job, but one day she decides to open a small e-commerce store to sell her creations occasionally. She doesn't have a physical store, doesn't make regular purchases of materials, and doesn't invest in structured advertising. She only sells when she has time and inclination, perhaps during holidays or at local events.

In this case, Maria could fall into the category of occasional activities, especially if her annual turnover remains below €5,000. Italian law indeed provides for a threshold for those selling goods or services in a non-professional manner, precisely to allow people like Maria to test a business idea without immediately having to deal with tax obligations.

However, it's important to remember that these exceptions have very specific limits. If Maria started selling her ceramics regularly, perhaps by investing in a more structured e-commerce website or making frequent purchases of materials, the Revenue Agency could consider her a professional seller. And at that point, opening a VAT number would become mandatory.

Limits and Risks

Let's start from a premise: e-commerce without a VAT number is not an excuse to evade taxes, but a legal option only in very specific contexts. Take Maria, the artisan who sells ceramics online occasionally. As long as she stays under €5,000 annually and doesn't organize her activity in a professional manner (e.g., regular purchases of clay, structured advertising campaigns), she is in compliance.

But what happens if Maria, excited by the first orders, decides to invest in a more advanced e-commerce website, hires a graphic designer to improve product photos, and starts advertising her ceramics on Facebook with monthly budgets? Well, here's the problem. The Revenue Agency might interpret these signals as proof of a professional activity, even if the turnover is still low. Result: penalties for tax evasion, adjustments to the amounts due, and an audit procedure that no one would want to face.

The biggest risk, however, isn't just the fines. Without a VAT number, Maria cannot issue invoices, deduct the cost of raw materials, or access funding dedicated to SMEs. In other words, what seemed like an opportunity to earn without a VAT number online turns into a limit to the growth of her business.

Myths to Debunk

One of the most common mistakes is thinking that opening an e-commerce business without a VAT number is as simple as creating a site on Shopify or WooCommerce and starting to sell. The reality is that the platform you use has no importance for the Italian tax authorities. What matters is how you organize your activity. If you have a professional website, make regular purchases of raw materials, or invest in structured advertising, the Revenue Agency could consider you a professional seller, even if your turnover is low.

Another myth to debunk is the idea that "as long as I don't exceed €5,000, I'm safe". That's not the case. If you sell in an organized and continuous manner, you risk penalties even if your turnover is below the threshold. The tax authorities look at the substance of your activity, not just the numbers.

Ultimately, starting an e-commerce business without a VAT number might seem like a convenient solution to test an idea or start a small activity, but it's important to reflect on what you truly want: to try out a project in a limited way or to aim to scale a business in a structured manner. The difference between testing and growing could determine if and when it will be necessary to open a VAT number. To make informed choices and reduce risks, it is always advisable to consult an accountant who can guide you through the tax regulations and help you make the right decision for your entrepreneurial journey.