Italy's Ministry of Economy and Finance has released updated lists of companies and entities subject to the VAT split-payment mechanism in 2027, covering entities controlled by central and local administrations, social security institutions, and other public-sector bodies.
Italy’s Ministry of Economy and Finance has published updated lists of entities eligible for the split payment mechanism in 2027.
Qualifying public bodies and administrations are excluded from these lists and must instead be identified through the separate list available on the Index of Public Administrations website.
Entities eligible for split payment mechanism in 2027
- Companies de facto controlled by the Presidency of the Council of Ministers and by the Ministries
- Entities or companies controlled by Central Administrations
- Entities or companies controlled by Local Administrations
- Entities or companies controlled by the National Social Security and Welfare Institutions
- Institutions, foundations or companies in which Public Administrations hold a total share of no less than 70 percent of the capital
Under the split-payment mechanism, the VAT component of certain transactions is paid directly into a designated VAT bank account, while the supplier receives only the net taxable amount. The lists of entities subject to the mechanism may be updated throughout the year.
