Under the split-payment system, buyers pay suppliers only the taxable amount, while the VAT portion is transferred directly to a designated VAT account.
Italy’s Department of Finance has released updated lists of companies required to comply with the VAT split-payment system for 2026, along with records dating back to 2018.
These lists include entities controlled by government ministries, central and local public administrations, national social security and assistance institutions, and companies with at least 70% public administration ownership.
The split-payment system mandates that, for certain transactions, the VAT portion of payments is sent directly to a designated VAT bank account. At the same time, the supplier receives only the taxable amount. Updates to these lists may occur throughout the year.
As previously reported, this system applies to companies listed on the FTSE MIB index of the Italian Stock Exchange. However, Italy has abolished the VAT split-payment system requirement for companies listed on the FTSE MIB index, which went into effect on 1 July 2025.
