- Italy quickly amended its 2026 VAT rules for barter/exchange transactions with D.L. 38/2026, replacing the “cost sustained” method with the contractually agreed monetary value.
- The original 2026 reform had set the VAT taxable base using the total costs attributable to the goods/services exchanged, to align with EU law.
- That “cost sustained” approach created practical problems, including difficult cost attribution and uneven VAT burdens between the parties.
- The new rule gives priority to the contractual value, but it cannot be lower than the total costs attributable to each party’s supply.
Source: commercialistatelematico.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
