Italy keeps VAT split payment until 30 June 2029
- Jurisdiction
- 🇮🇹 Italy
- Tax
- VAT
- Change type
- Compliance
- Status
- Enacted
- Impact
- FYI
- Announced
- 8 July 2026
- Effective
- 1 July 2026
- Instrument
- EU-CID-IT-SPLITPAY-2026
- Authority
- Council of the European Union
- Systems
- Invoicing, Tax engine, ERP
- Verified
- Fetched from official source · high confidence
Suppliers to Italian public authorities and public-authority-controlled companies — the categories currently inside the split-payment mechanism. Listed companies left its scope on 1 July 2025 and this extension does not bring them back.
No action — monitoring only.
InvoicingTax engineERP
The Council of the European Union approved a Council Implementing Decision extending Italy's VAT split-payment derogation, Implementing Decision (EU) 2017/784, which derogates from Articles 206 and 226 of Directive 2006/112/EC for supplies to public authorities, public-authority-controlled companies and certain listed companies, from 30 June 2026 to 30 June 2029, with effect from 1 July 2026. Italy's deadline to report to the Commission on the measure's impact moves from 30 September 2024 to 30 September 2027. Adoption was approved by Coreper Part 2 on 8 July 2026.
What changed in detail
The Council of the European Union approved a Council Implementing Decision extending Italy’s VAT split-payment derogation — Implementing Decision (EU) 2017/784, which derogates from Articles 206 and 226 of Directive 2006/112/EC — from 30 June 2026 to 30 June 2029, with effect from 1 July 2026.
The extension amends only Article 5 (the expiry date) and Article 3 (the reporting deadline). It does not touch scope. Companies listed on the stock exchange were removed from the measure on 1 July 2025 by Implementing Decision (EU) 2023/1552, so the mechanism now covers supplies to public authorities and public-authority-controlled companies only.
Italy’s deadline to report to the Commission on the measure’s impact moves from 30 September 2024 to 30 September 2027. Adoption was approved by Coreper Part 2 on 8 July 2026.
What it means
No action: the mechanism Italian suppliers were already applying simply continues. Worth noting for the record that the authorisation lapsed on 30 June and was renewed with retroactive effect from 1 July, so there was a fortnight in which the legal basis for a mechanism still in daily use had technically expired. The renewal closes that gap rather than leaving it to be argued about later.
Sources
- Council Implementing Decision amending Implementing Decision (EU) 2017/784 authorising the Italian Republic to apply a special measure derogating from Articles 206 and 226 of Directive 2006/112/EC on the common system of value added tax
- List of 'A' Items — Council of the European Union (Economic and Financial Affairs), 10 July 2026