Italy: VAT split-payment mechanism extended to 2029
The measure is authorized to remain effective until June 30, 2029.
The EU Economic and Financial Affairs (ECOFIN) Council on July 10, 2026, approved a Council Implementing Decision authorizing Italy to continue applying its VAT split-payment mechanism beyond June 30, 2026.
Under the split-payment mechanism, the supplier receives the taxable amount while the VAT due is paid directly by the customer into a blocked VAT account, rather than to the supplier.
The measure is authorized to remain effective until June 30, 2029, for transactions involving the categories of recipients covered by the regime.
For more information, contact a KPMG tax professional in Italy:
Davide Morabito | dmorabito@kpmg.it
Elia Travagliati | etravagliati@kpmg.it