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Italy's VAT Act Rewrite Enters Its Final Preparation Year

Six months into 2026, Italy is preparing for the most significant restructuring of its VAT framework in more than fifty years. A new Consolidated VAT Code will replace the patchwork of legislation that has governed Italian VAT since the 1970s, but most of its substantive provisions do not take effect until January 2027. The first half of 2026 has therefore become a transition year: businesses are adapting to the new framework while tax authorities continue tightening fiscal controls, expanding digital reporting, and aligning domestic rules with broader EU reforms.

Official Guidance·Jun 9

Italian Tax Agency Rules Corporate Spin-Off Not Tax Abuse

The Agenzia delle Entrate determined that a complex corporate restructuring involving share transfers and asset splits does not constitute abusive tax avoidance under Article 10-bis.

Court Decision·Jun 8

Italy’s Supreme Court: Mobile-Phone Cashback Promotions Do Not Permit VAT Adjustment Under Reverse-Charge Regime

Italy's Supreme Court ruled that expenses advanced during partial company demergers remain outside VAT scope when reimbursed, even if original documentation was addressed to the demerged entity.

Official Guidance·May 25

Italy Confirms VAT Exemption for Boats in Cross-Border Residence Transfers

Italian Revenue Agency clarifies that boats owned through corporate structures can qualify for VAT import exemption when individuals relocate to Italy, provided possession and use requirements are met.

Official Guidance·May 22

Italy Extends Electronic Invoice Data Access to Tax Collection Agency

Italian tax authority will share electronic invoice data with collection agency to improve third-party enforcement actions, targeting debtors' receivables from six-month periods.

Official Guidance·May 21

Italy Clarifies VAT Treatment of Chain Supplies and Registration Obligations

Italy’s Revenue Agency (Agenzia delle Entrate), in Response No. 111/2026, clarified the VAT treatment of a cross-border chain transaction involving a German intermediary, a Polish supplier, and an Italian customer. The case concerned goods transported directly from Poland to Italy by the German intermediary, which argued that the transaction qualified for the EU triangular simplification regime.

Court Decision·May 13

Italian Supreme Court: Reimbursement of Advanced Expenses Following a Demerger Remains Outside the Scope of VAT

Italy's Supreme Court confirms that reimbursements for advance payments remain outside VAT scope even when contractual relationships transfer through partial demergers.

Law & Regulation·May 9

Italy Cuts Fuel Excise Rates, Offsets With VAT Increase Compensation

Italy temporarily reduces excise duties on fuel products while introducing VAT compensation measures through an interministerial decree effective May 9, 2026.

Court Decision·Apr 30

Supreme Court Upholds Simultaneous VAT Deduction Denial and Joint Liability Under Article 60-bis

Italy's Supreme Court ruled buyers can face both VAT deduction denial and unpaid VAT demands in carousel fraud schemes, creating potential double liability exposure.

CJEU Case·Apr 20

Italian Auction House Challenges VAT Deductibility Rules at EU General Court

Appellant_1 Srl questions whether VAT on general auction expenses must be non-deductible under margin scheme rules, with implications for tax neutrality principles.

Official Guidance·Apr 6

Italy Restricts VAT Group Credits From Offsetting Member Tax Debts

Italian Revenue Agency confirms VAT groups cannot use excess credits to offset individual member tax liabilities, limiting usage to refunds or third-party transfers only.

CJEU Case·Mar 20

Italian Court Seeks CJEU Ruling on VAT Deduction Rights for Auction House General Expenses

Italian tax court questions whether EU law permits blanket denial of VAT deductions on auction house general expenses that aren't passed to buyers under margin scheme rules.

Administrative News·Mar 19

Italy Mandates Product Codes in E-Invoices for National Commission Tracked Goods

Italian Revenue Agency requires businesses to include specific product identification codes in electronic invoices for goods monitored by National Unique Commissions, with data transmitted weekly to agricultural authorities.

Official Guidance·Mar 9

Italian Tax Agency Clarifies VAT Treatment of Milestone Payments in Intra-EU Supplies

Italy's Revenue Agency ruled that milestone payments qualify as advance payments for VAT purposes, with the 90-day proof requirement starting when goods are ready for shipment to another EU member state.

Official Guidance·Dec 16 2025

Italy Issues Guidance on Cross-Border SME VAT Exemption Scheme

Italian Revenue Agency provides operational instructions for new EU-wide VAT exemption regime allowing small businesses to operate tax-free across member states from January 1, 2025.

Policy Development·Jun 22