SF: Italy has launched a new Consolidated VAT Code to unify and modernise VAT legislation. Effective from January 2027, the Code streamlines e-invoicing, digital reporting, export documentation, and regulatory references, giving businesses a year to update compliance processes and procedures.
Italy has released the new Consolidated VAT Code (Testo Unico IVA), which reorganises VAT legislation into a single framework.
Published following Legislative Decree no. 10 of 19 January 2026, and approved by the Council of Ministers on 22 December 2025, the code merges prior regulations, including Presidential Decree No. 633/1972 and Decree Law No. 331/1993, while aligning Italian VAT rules with EU Directive 2006/112/EC.
The Code also introduces updates and clarifications, including:
- A modernised export evidence rule requiring customs exit proof for extra-EU supplies.
- E-invoicing rules for issuing, transmitting, and storing invoices and receipts are now consolidated in a single framework, making them easier to interpret and apply.
- Integration of digital reporting for daily receipts and pre-filled VAT returns.
- Updated regulatory references and VAT rate tables.
The decree took effect on 31 January 2026, with most provisions coming into force on 1 January 2027. This gives businesses around one year to adjust procedures, templates, and compliance practices.
