Italy: Consolidated VAT Act includes no substantive changes, but simplifies consultation
Consolidated VAT Act reorganizes and renumbers existing VAT provisions to simplify consultation.
Legislative Decree no. 10/2026 (issued on October 26, 2026) introduced a new consolidated VAT Act, which does not include any substantive changes, but consolidates, reorganizes, and renumbers existing VAT provisions under Presidential Decree no. 633/1972 and Law Decree no. 331/1993 to simplify consultation. The new VAT Act consists of 171 articles, organized under 18 headings, and includes an appendix containing four lists. The legislation will become effective on January 1, 2027.
Although the underlying tax rules remain unchanged, taxpayers must update the statutory references to Italian VAT legislation printed on their invoices. For e-invoices, while the VAT rates and nature codes (such as N1 and N2) remain the same, the new article numbers must be entered in fields such as "Causale" or "Riferimento Normativo" for invoices issued from January 1, 2027. In addition, internal enterprise resource planning (ERP) systems, accounting programs, and related VAT records must be updated to reflect the new legislative numbering. Transitional measures are included during which invoices that continue to reference the old legislative decrees will not be treated as invalid.
Read an October 2026 report prepared by the KPMG member firm in Italy