The Registrar (= company specialised in the registration of Internet Domain Names) should pay a registration fee to the competent Registry, on behalf of the registrant (= domain name holder).
In general, the registration terms is of 12 months. This is for example the case for Domain Names with extension .IT .COM .NET and .ORG.
The newcomers on the Internet Domain space, .BIZ and .INFO have an initial registration term of 2 years.

*VAT: only for Italian individuals and/or companies.