Regulatory updates - Italy

On July 14, 2025, the Italian Council of Ministers approved the draft Consolidated VAT Code (Testo Unico IVA ), which aims to streamline the country's VAT regulations. The new code is set to become effective on January 1, 2026, with the decree formally entering into force the day after its publication. The draft is currently under review by parliamentary committees.

The consolidated VAT Code transposes multiple existing regulations into a unified framework consisting of 171 articles. This integration includes Presidential Decree 633/72, Decree Law no. 331, and various other complementary VAT provisions. The structure has been designed to align with the European Union VAT Directive (2006/112/EC) and addresses both national and intra-community operations.

While the primary purpose of this consolidation is to rationalize existing rules, the code also introduces some targeted updates. Some key aspects include:

• A modernized evidentiary regime for export VAT non-taxability for exports outside the EU, with specific requirements for customs exit proof (prova i uscita doganale);
• Consolidated rules governing electronic invoice issuance, transmission, and storage;
• Incorporation of digital reporting requirements for daily receipts (corrispettivi giornalieri) and pre-filled VAT returns; and
• Various refinements to the rate tables.

Businesses should note that when the code comes into effect, references used in invoicing and accounting procedures will need to be updated to align with the new consolidated framework.

On June 19, 2025, the Finance Committee approved Resolution No. 7-00286 concerning receipt issuance for electronic payment transactions. The resolution recognizes that receipts have evolved from tax documents to commercial documents following the introduction of daily receipts data reporting to the Revenue Agency, Agenzia delle Entrate (AdE). Despite this evolution, most receipts are still issued on paper, raising environmental concerns due to the use of non-recyclable paper that requires significant resources to produce.

This initiative aims to reduce environmental impact while streamlining tax procedures through the digitalization of commercial documentation. Consumer choice remains protected under the resolution, as customers will still have the option to request paper receipts if they prefer.

The Commission proposes a phased transition to digital receipts:

• From January 1, 2027: Businesses with large-scale distribution;
• From 2028: Businesses with revenue exceeding a specified threshold; and
• From 2029: All remaining merchants.

The approval of this resolution is the initial step in the process, and the regulatory framework, including implementation details and timeline, is yet to be published.

On June 4, 2025, the Council of Ministers announced the final approval of Legislative Decree "Supplementary and Corrective Provisions on Tax Compliance, Biennial Preventive Settlement, Tax Justice, and Tax Sanctions," (Disposizioni integrative e correttive in materia di adempimenti tributari, concordato preventivo biennale, giustizia tributaria e sanzioni tributarie).  

The decree supplements and amends various tax obligation provisions, including Legislative Decree No. 119/2018, by removing references to specific tax periods. Consequently, it permanently prohibits the issuance of electronic invoices via the SdI for healthcare services provided to individuals (B2C) by entities required to submit data to the Health Card System (Sistema Tessera Sanitaria), thereby ensuring the confidentiality of healthcare data. Additionally, the decision aims to avoid costly infrastructure development and prevent additional expenses for healthcare providers.