In Italy, the VAT identification number is called Partita IVA and it is an 11-digit sequence that identifies a tax subject who carries out commercial or professional activity. This number is aiming at tracking his activity in order to prevent tax frauds. 

If you are a foreign citizen planning to open a business or to provide goods and business services in Italy, then you need to register for local VAT.

The registration process takes place at the Italian Tax Agency (Agenzia delle Entrate) through the presentation of the proper documentation. When you register for VAT number, you are required to choose the class type from a Register with the Register of Companies at the Chamber of Commerce and, according to the nature and dimension of it, a predetermined tax system will be applied. 

In Italy, any company or professionals is required to apply for a VAT number. Usually, the registration is managed with the company formation, by a lawyer, within 30 days from the beginning of the activity.

If your business is thought to trade within the European Union, you are required to register in the VIES registry by way of a specific application. 

Closing the VAT number means that the activity has ceased. This involves carrying out all the necessary compliances leading to the legal termination of the activity.       

In the particular case of professionals, the closure of the VAT number has to be requested within 30 days of the end of the activity by filling proper forms to be submitted to the Italian Tax Agency.        
In the case of companies, it is first necessary to request the cancellation from the Register of Companies and then to fill the proper forms to be submitted to the Chamber of Commerce.

In Italy, if you do not want to run the risk of being sanctioned, you have to carry out all the required formalities when opening or closing a business and that is why the assistance of a lawyer or an accountant is highly recommended.