Italy’s New VAT Code: What to Expect from the 2026 Reform
- Consolidation and Simplification: Italy’s new VAT Code, approved by the Council of Ministers, consolidates existing VAT legislation into a single framework of 171 articles across 18 titles, effective January 1, 2026, simplifying compliance for businesses and aligning with EU directives.
- Digital Proof for Exports: The reform mandates that only digital customs proof will be accepted for exports outside the EU, replacing paper documents. Exporters must utilize the Automated Export System (AES) to comply with the new requirements.
- Integration of E-Invoicing and Digital Services: The new VAT Code fully integrates electronic invoicing, digital reporting, and rules for streaming events, enhancing tax compliance and reducing administrative burdens for businesses engaged in digital services and international trade.
Source Marosa
- Italy’s Council of Ministers approved a draft for a new VAT consolidation code
- Approval was given on 14 July 2025
- The new VAT law is part of broader tax reforms
- It is structured into 18 sections and 171 articles
- The aim is to consolidate and reorganize existing VAT provisions
- The goal is to simplify the application of VAT laws
Source: regfollower.com
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