Italy Approves Legislative Decree Implementing Initial ViDA Measures

Summary

Italy’s Council of Ministers approved a legislative decree on 28 October 2026 to implement the first domestic measures linked to Directive (EU) 2025/516.

The package focuses principally on OSS, IOSS, e-commerce and the transition toward Single VAT Registration rather than implementing every ViDA pillar at once.

Businesses should track final publication and effective provisions, particularly changes affecting platform models, cross-border stock movements and VAT registrations.

Extended article

Italy has advanced the domestic implementation of VAT in the Digital Age. On 28 October 2026, the Council of Ministers approved a legislative decree implementing provisions of Directive (EU) 2025/516. The measure follows the Italian enabling framework and parliamentary consultation process and represents an early national step in the broader ViDA timetable.

The decree is understood to focus on the first wave of ViDA changes, particularly the One Stop Shop, Import One Stop Shop, electronic-interface rules and measures supporting the future Single VAT Registration framework. These areas are especially relevant to cross-border sellers, online marketplaces and businesses that move goods between Member States.

The development should not be read as a complete domestic implementation of all ViDA pillars. The major EU reforms on digital reporting, platform-economy deemed supplies and the Transfer of Own Goods simplification follow the staged EU timetable. Businesses must therefore distinguish between provisions effective from 2027 and later measures scheduled for 2028 to 2030.

The immediate compliance task is to identify Italian transactions currently managed through local VAT registrations, OSS or IOSS and determine whether the new law changes eligibility, reporting or evidence requirements. Companies should also assess call-off stock, own-goods movements, marketplace arrangements and energy supplies. Final legal text and administrative guidance remain critical, particularly because Italy is simultaneously transitioning to a consolidated VAT Act from 1 January 2027. ERP tax logic, invoice legal references and VAT procedure documents may require coordinated updates.

External sources: VATupdate summary of the approved decree | Regfollower overview | Background on Italy’s staged ViDA implementation | Italian Revenue Agency consultation overview | Directive (EU) 2025/516 in EUR-Lex | EU Commission overview of VAT in the Digital Age | Regfollower consultation background