An Italian citizen or resident can go online and buy vpn service from me. There is not law im subjected to that says I can’t sell vpn services to Italians.
This isn’t true. If you don’t comply with the other law regarding the website blocks then the Italian govt will politely ask you to. If your business happens to be on another EU member state they might even try to get your local authorities involved in the asking. Either way, if you don’t comply or they can’t reach you (cause you’re ouside the EU) they’ll proceed to block your website / domains in Italy and no more business for you.