The EU Commission has approved the fiscal rules outlined in Italy’s Third Sector Code (Legislative Decree No. 117/2017), which provides a comprehensive framework for Italian non-profit entities. Effective January 1, 2026, these new rules will repeal ONLUS regulations and close its registry, requiring existing ONLUS to register with RUNTS by March 31, 2026, to be part of the Third Sector. A significant impact of this transition concerns VAT exemptions, which will apply to non-commercial Third Sector Entities (ETS) from 2026. ONLUS must therefore assess if they qualify as non-commercial ETS by evaluating the predominance of their non-commercial activities to maintain these exemptions, as the Italian Revenue Agency clarifies that commercial entities, including ETS with social enterprise status, will not be eligible, potentially imposing a 22% VAT on previously exempt services for those transitioning as social enterprises.
Source: eutekne.info
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