The Italian Revenue Agency has ruled that amounts retained by Renewable Energy Communities from government incentives are not subject to VAT, as they are used solely to cover operational costs and do not constitute commercial transactions with members.
Italy’s Revenue Agency has clarified on 9 February 2026 that funds withheld by Renewable Energy Communities (CERs) from member incentives fall outside VAT regulations and don’t count as taxable revenue.
According to the Response No. 22/2026, the Agency addressed how CERs should treat withheld portions of incentives from the Electronic Services Manager (GSE). The ruling confirms these withholdings lack commercial characteristics since they don’t represent payment for extra services or create reciprocal obligations between the community and its members.
The case involved a third-sector organisation registered with the National Register of Third Sector Entities (Runts) that facilitates and manages CERs—groups of families, businesses, and organisations that share renewable energy and access incentive programs.
CERs receive two main GSE payments: premium tariffs on shared energy and Arera contributions that reimburse certain tariff components. These amounts are distributed to “self-consumer” members.
However, managing these energy-sharing arrangements creates significant technical and administrative expenses. When membership fees don’t cover operational costs, communities may retain a percentage of incentives before distribution.
The Revenue Agency determined that these withholdings simply cover general management expenses and maintain financial stability. They function similarly to distributing full GSE payments to members, then requesting supplementary membership fees.
Since the withheld amounts provide no additional benefit beyond standard institutional activities and don’t establish a bilateral commercial relationship, they remain VAT-exempt and outside taxable revenue.
