- Italian VAT law currently bases the VAT taxable amount for barter transactions on market value.
- The EU requires the VAT taxable base for barter transactions between unrelated parties to be based on costs incurred, not market value.
- The draft Italian Budget Law proposes aligning with EU rules by using supplier costs as the VAT base for barter transactions.
- The new rules are set to take effect on 1 January 2026, pending final approval, and will not apply retroactively.
- Businesses will need to identify and document all costs related to barter transactions under the new regime.
Source: dlapiper.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.
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