Italy: The ECOFIN Council has approved the extension of the VAT split-payment system, allowing continued use of the split-payment mechanism for specified recipients. The decision, adopted on 10 July 2026, confirms that suppliers will receive the taxable amount while VAT is paid directly to a blocked bank account.
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Key Takeaways
From 10 July 2026, Italy's ECOFIN Council authorised the continued use of the VAT split-payment system.
Under Italy's VAT split-payment system, suppliers receive the taxable amount while VAT is paid directly to a blocked VAT bank account.
Suppliers must receive the taxable amount and pay VAT to a blocked VAT bank account under Italy's split-payment system.
Primary source
Read the full article at OrbitaxThis summary was published on VATfaqs.com on 13 July 2026. It relates to VAT developments in Italy. The original source is Orbitax.
