What is it?
The Italian codice fiscale is the main identification tool for both individuals and legal entities in their dealings with the Italian Public Administration (Ministerial Decree n.13814/1976).
The italian fiscal code for companies consists of eleven numeric characters:
- the first seven identify the taxpayer through a progressive number
- the next three represent the office identification code
- the last one is a control character
The governing rules are set out in Presidential Decree n. 605 del 29 settembre 1973 Presidential Decree No. 605 of 29 September 1973, which established codice fiscale (commonly abbreviated in Italian as CF) and defines the general rules regarding the Tax Registry.
This regulation is implemented through the creation of an IT system managed by the Italian Revenue Agency, which collects, stores, and manages information concerning Italian taxpayers.
In particular, Article 1, paragraph 1, of the aforementioned DPR 605/1973 provides that: “The tax registry collects and organizes on a national scale the data and information resulting from declarations and reports submitted to the offices of the financial administration and from the related assessments, as well as any data and information that may in any case be relevant for tax purposes.“
Why do you need a fiscal code in Italy?
For foreign companies not resident in Italy (e.g., those without a permanent establishment in Italy and with a registered office abroad), the Italian fiscal code is the first step in fulfilling legal obligations, allowing them to operate legally on Italian territory.
Possession of the italian fiscal code for foreign companies is necessary to conclude a wide range of acts listed in Art. 6 of DPR 605/1973:
- tax and fiscal acts: invoices and VAT documents (letter a), IRES returns (letter d), VAT obligations (letter d), appeals to tax commissions (letter g-quater). Foreign companies not resident in Italy are required to file corporate income tax returns (Modello Redditi SC) for all income produced in Italy. For these companies, a fiscal code is therefore mandatory;
- registered and notarial acts: contracts, private agreements, notarial deeds subject to registration either within a fixed term or in case of use, for the parties immediately affected by the legal effects of the act (letter b). For example, applications for registration of acts in the Companies Register;
- banking, financial, and corporate acts: transactions or agreements concluded by companies or financial institutions with clients for the opening or closing of ongoing relationships (e.g., current accounts, deposits, etc.) (letter g-quinquies), insurance contracts (letter g-ter), service supply contracts (letter g-ter).
- real estate and registered movable property acts: transcription, registration, and annotation in real estate registers (letter d), registration and re-registration of motor vehicles, motorcycles, and trailers (letter e), registration of ships, recreational craft, and related transfer deeds (letter f).
- authorizations, licenses, and concessions: applications for commercial, industrial, and professional licenses (letter e), concessions for public land, building permits and construction activities (letter e-bis), registration in professional registers and registers of self-employed activities (letter f).
- social security, welfare, and health acts: certifications issued by INPS or administrations for amounts paid and withholdings made (letter d). For example, when a foreign company establishes employment relationships with Italian personnel (see obligations under Decree-Law 31 July 1987, No. 317 regarding the protection of Italian workers employed outside the EU) or carries out work activity in Italy, the foreign employer must register with social security institutions (INPS, INAIL) and therefore needs a fiscal code. The procedures for foreign companies to register with the competent INPS Directorate are clarified in INPS Circular No. 2 of 3 January 2007.
Article 6, paragraph 2 of DPR 605/1973 provides that the obligation to indicate the fiscal code may be considered fulfilled if the foreign legal entity, lacking a fiscal code, declares the following data:
- Corporate name or business name
- foreign tax domicile (i.e., the registered office)
In application of this provision, the Tax Administration – with Resolution 5/E 2023 – recognized the possibility for a non-resident subject without a codice fiscale to conclude a lease agreement, provided that the personal data referred to in Art. 6, paragraph 2, DPR 605/1973 are included in the lease registration request submitted through Form 69 to the Italian Revenue Agency. Furthermore, the Revenue Agency clarified that “the aforementioned methods are also applicable to the registration of private deeds other than lease contracts, where compatible.”
Which office should the request be submitted to?
The documentation for requesting an italian fiscal code must be submitted or sent electronically to any office of the Italian Revenue Agency, regardless of the taxpayer’s tax domicile, in accordance with the operational instructions provided by the Tax Administration (see Provision No. 2009/189273).
Since 2021, it has been possible to apply for and upload tax documentation directly on the Revenue Agency’s website through the “Document and Application Submission” service and the services for requesting the italian fiscal code assignment certificate, the VAT number assignment certificate, and several others.
While it is true that such an application can be submitted directly by the taxpayer, to avoid mistakes, unnecessary delays, or other issues, it is advisable to rely on a professional intermediary to handle these (and other) tax procedures.
How do I get my fiscal code?
For entities other than natural persons that do not carry out activities relevant for VAT purposes, it is possible to request the assignment of codice fiscale by submitting form AA5/6 (introduced by Revenue Agency Provision 2009/189273) along with documents proving the subjective and objective elements for the recognition of the legal entity (e.g., articles of incorporation, bylaws, etc.).
To correctly complete the request, among others, the following must be provided:
- Italian fiscal code of the foreign legal representative, to be obtained with form AA4/8
- Registered office of the company abroad
- Elected domicile in Italy, to be formally declared
- ATECO code, depending on the activity carried out, to be specified by means of a specific declaration
This documentation must be:
- Legalized or apostilled if issued abroad
- Translated into Italian, with sworn translation in Italy
The documentation may be submitted through an authorized intermediary or according to the following methods, depending on the competent Office:
- Web service “Document and Application Submission” in the reserved area of the Revenue Agency’s website. For transmission purposes, select the category “Request for certificates, copies, and fiscal codes”
- Certified Electronic Mail (PEC) sent to any Provincial Directorate
- Direct submission, in duplicate, at any office of the Revenue Agency
- Postal service, in a single copy, by registered mail
If there is a change in the data declared in form AA5/6, the taxpayer can update the form and submit the updated version to the Revenue Agency, either electronically, directly, or through authorized intermediaries.
Which legal entities need a fiscal code in Italy?
Among non-resident legal entities that may need a codice fiscale are:
- Corporations or partnerships with a registered office abroad but carrying out economic or commercial operations in Italy
- Foreign entities and trusts that engage in contractual, financial, or other types of relationships with Italian entities
- Consortia, associations, or other collective entities that participate in tenders or integrate into the Italian economic system
VAT Identification
The assignment of an italian fiscal code for non-resident foreign entities often goes hand in hand with obtaining an Italian VAT number, required in certain cases of business activities carried out in Italy.
According to Article 35-ter of the DPR 633/1972, non-resident entities carrying out VAT-relevant operations in Italy must identify themselves, either through a permanent establishment or by appointing a tax representative. If not, they can still proceed with direct identification at the Revenue Agency.
A VAT number is essential to fulfill invoicing, registration, and VAT payment obligations in the cases provided by the relevant regulations, while the codice fiscale only allows for more general identification of the entity for tax and social security purposes.
Is fiscal code the same as VAT number in Italy?
For corporations and partnerships, codice fiscale coincides with the VAT number, with the same number serving both functions. This allows for unified identification in the tax and administrative context.
The situation is different for individual enterprises, for which codice fiscale corresponds to the personal code of the owner and remains separate from the VAT number. Sole proprietorships therefore have:
- A 16-character alphanumeric codice fiscale corresponding to that of the individual
- An 11-digit VAT number
The equivalence between fiscal code and VAT number does not apply in cases where partnerships or corporations change their tax domicile (i.e., the municipality in which their registered office is located). In such cases, the competent Revenue Agency assigns a new VAT number, while the fiscal code remains unchanged.
An essential point must be made here: while the assignment of a codice fiscale to an entity does not automatically entail the assignment of an (identical) VAT number, whenever a company or legal entity has a VAT number, it also automatically has an italian fiscal code coinciding with that VAT number.
Permanent establishment in Italy. Is a VAT number necessary or is the fiscal code sufficient?
If a legal entity does not intend to carry out a business, artistic or professional activity, nor to establish a permanent establishment, the possession of a codice fiscale is sufficient for all acts provided for under Article 6 of Presidential Decree No. 605/1973. While obtaining an italian fiscal code is necessary and sufficient in order to perform the individual transactions exemplified above, the conduct of an economic activity as such may, and often does, require the fulfilment of further obligations.
The VAT number may be required in order to undertake the exercise of a business, artistic or professional activity within the territory of the State, or to open a permanent establishment in Italy, pursuant to Article 35, paragraph 1 of Presidential Decree No. 633/1972.
For further information, please refer to our in-depth analysis concerning the notion of permanent establishment.
On this subject, in Ruling No. 453/2023, the Italian Tax Authorities provided an important clarification regarding the possession of a codice fiscale by a permanent establishment in Italy. The parent company (foreign) and the permanent establishment in Italy must operate in the State by using the same Codice fiscale, in accordance with the principle prohibiting the attribution of two fiscal Codes to the same legal entity (see also Ruling No. 347/2020 on this principle). Since the permanent establishment does not have legal personality separate from the parent company, both are required to use the same codice fiscale.
Acquisition of shares in Italian companies by foreign legal entities or individuals. Is codice fiscale mandatory?
The Guidelines (2022) of the Technical-Legal Commission of Unioncamere and the Italian National Council of Notaries addressed the obligation of foreign subjects to have a codice fiscale in relation to the acquisition of shares in Italian companies.
It was confirmed that there is no obligation to indicate the italian fiscal code in procedures related to the acquisition of company shares in Italy by foreign subjects (Form S on the shareholders’ register).
Conversely, the possession of codice fiscale remains mandatory when the acquisition involves a single individual and concerns the entire shareholding (Intercalary Form P).
The new forms were adapted accordingly by MISE decree n. 98/2021, which removed the fiscal code of the foreign subject from the list of required personal data for the acquisition of shares in Italian companies.
