Italy has abolished the VAT split-payment system for FTSE MIB-listed companies, effective 1 July 2025.
Italy has abolished the VAT split-payment system requirement for companies listed on the FTSE MIB index, as per Decree-Law No. 84 of 17 June 2025, effective 1 July 2025.
According to the split-payment system, goods and services supplied to specific recipients are taxed at standard VAT rates. However, payments are divided: the taxable amount is paid to the supplier, while the VAT portion is sent directly to a designated blocked VAT bank account.
On 27 June 2025, the Italian Revenue Agency issued a new FAQ clarifying the effective date of a tax amendment. The FAQ specifies that the exclusion of listed companies applies to transactions with invoices issued on or after 1 July 2025, regardless of the supply date or when VAT becomes chargeable. Additionally, an invoice is deemed issued when it is transmitted to the Electronic Invoicing Exchange System (SDI).
Earlier, Italy extended the VAT split payment system for most public sector transactions until 30 June 2026. However, FTSE MIB-listed companies will transition back to the standard VAT system from 1 July 2025.
