Italian Wineries Boost Profits as EU Direct-to-Consumer Wine Sales Reach 70% Margins

The direct-to-consumer (D2C) sale of wine to private individuals within the European Union is becoming an increasingly attractive option for Italian wineries, offering profit margins as high as 70%. This is more than double the 30% margin typically seen in traditional retail sales. The shift is being driven by advances in technology and changes in tax regulations, particularly regarding value-added tax (VAT), which have made it easier for producers to reach consumers across borders.

Recently, these developments were discussed at a meeting organized by Assoenologi in collaboration with Direct from Italy at the Masi Monteleone 21 winery in Valpolicella. Industry experts highlighted how digital tools have removed many of the barriers that once separated producers from consumers. Online platforms now allow wineries to connect directly with customers in distant countries, opening up new market segments and enabling them to serve geographic niches that were previously inaccessible.

Despite these opportunities, international D2C sales remain complex. Only a limited number of wineries are currently engaged in this type of business, and not all are fully compliant with legal requirements. Until a few years ago, wineries selling wine to private customers in other EU countries had to register for VAT in each destination country and pay local taxes according to each nation’s rates—20% in France, 19% in Germany, for example. This process was costly and bureaucratically challenging.

Since July 1, 2021, however, the EU has introduced the One Stop Shop (OSS) system for B2C transactions. By registering on the OSS portal of the Italian Revenue Agency, wineries can now declare and pay VAT for all EU sales through a single quarterly filing in Italy. The system then distributes the appropriate amounts to each member state. Small businesses with annual B2C sales below €10,000 can continue applying Italian VAT (22%) and pay it domestically. This change has significantly reduced administrative burdens and costs for small shipments, making cross-border D2C sales more accessible.

However, excise duties remain a major challenge. Unlike VAT, excise taxes are based on quantity rather than value and must be paid in the country where the wine is consumed. According to Andrea Zucchetta from the Customs and Monopolies Agency for Veneto and Friuli Venezia Giulia, excise duties must be settled by a registered entity in the destination country. The wine must be shipped from a licensed warehouse or registered sender and received by another registered party abroad, who then pays the excise duty before delivering the product to the final consumer.

For most small producers, managing these requirements independently is difficult. Many rely on specialized companies that act as certified shippers and handle excise payments on their behalf. Failure to comply can result in administrative fines ranging from €500 to €3,000 and may trigger further investigations or penalties across EU countries.

In Italy, wine is exempt from excise duty when consumed domestically. However, this exemption does not apply to exports; wines shipped to countries like Ireland, Finland or Sweden are subject to high local excise rates.

The growing interest in D2C sales is also reflected in the rise of companies providing technological and legal infrastructure for direct online sales. At Wine Paris 2026’s “Wine Tech Perspectives,” 90% of selected companies specialized in supporting D2C operations for wine brands.

Denis Andolfo, co-founder of Direct from Italy, noted that many wineries either ignore D2C rules or avoid this channel out of fear of non-compliance. Yet he emphasized that international direct sales offer significant advantages: higher profit margins—up to 70% compared to 25-30% for retail—direct relationships with consumers that foster loyalty, and access to valuable customer data for targeted marketing at lower costs.

As European markets face stagnation or decline in some sectors, D2C e-commerce offers Italian wineries a way to maintain or grow their market share by reaching consumers directly across borders. The combination of simplified VAT procedures through OSS and specialized support services for excise compliance is making this business model increasingly viable for both large and small producers seeking new growth opportunities within the EU.