Italy keeps VAT split payment until 30 June 2029
- Jurisdiction
- Italy
- Tax
- VAT
- Change type
- Compliance
- Status
- In force
- 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.
Proof
The authorisation to apply the special measure should therefore be extended until 30 June 2029 .
Source snapshot of the official page. Open full size ↗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