Italy’s 2026 Budget Law introduces a €2 handling fee for low‑value shipments (≤ €150) from non‑EU countries, effective 1 January 2026. The fee applies to all business models and is collected by the Customs and Monopolies Agency upon final importation, with a transitional payment deferral for January and February 2026. Businesses must adjust customs declarations, accounting, and documentation to comply.
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1stopVAT · 18 days ago
A Milan Tax Court decision on 20 January 2026 clarified that direct sales made under consignment agreements are not subject to Italy’s Digital Services Tax (DST). The ruling confirms that the 3% DST applies only to digital intermediation activities and that companies meeting the turnover thresholds are liable. The court also upheld a refund claim for over‑EUR 1 million of over‑paid DST for the 2020‑2022 period.
Vertex Inc · about 1 month ago
Italy’s mandatory B2B e‑invoicing via the SDI platform has exposed high first‑pass rejection rates driven by master‑data errors, highlighting the need for a tax engine to ensure real‑time compliance. The article quantifies savings of €37 per invoice and a drop in rejection rates to about 5% when a tax engine is used. It underscores that even mature markets like Italy still face significant data quality challenges that a tax engine can address.
VatCalc · about 2 months ago
Italy has amended its 2026 barter VAT rules, replacing the cost‑based valuation model with a contractual value approach. The change, effective 1 January 2026, requires the taxable amount to reflect the parties’ agreed monetary value but not fall below the supplier’s direct costs, and applies retroactively to contracts from that date while protecting earlier invoices.
StudioLegalEbianucci · about 2 months ago
The Court of Cassation’s Order no. 17536/2025 clarifies that formal violations of VAT bookkeeping and invoice preservation do not automatically bar the right to deduction, provided substantive obligations are met. The ruling sets two exceptions—fraudulent intent or inability to prove substantive compliance—under which deduction is denied. It reinforces the principle of fiscal neutrality while maintaining sanctions for formal non‑compliance.
Meridian Global Services · about 2 months ago
From 1 January 2026, Italy has enacted a new automated VAT assessment regime for omitted annual returns, allowing the tax authority to calculate VAT due using e‑invoicing and other digital data. The automated determination must be completed by 31 December of the seventh year following the missing return, and penalties are capped at 120% of VAT due, reducible to one‑third if paid within 60 days of notice.
The Invoicing Hub · about 2 months ago
Italy’s e‑invoicing system will adopt new SDI technical specifications effective 15 May 2026, adding VAT‑group checks, expanded accreditation limits, and a sports‑worker exemption code. The ViDA directive will require Italy to shift from its centralized SdI model to a decentralized reporting architecture by 1 January 2035, and to adopt the EN16931 standard. These changes affect ERP vendors, e‑invoicing service providers, and all businesses issuing electronic invoices in Italy.
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Key Takeaways
It takes effect on 1 January 2026.
Shipments originating from non‑EU countries with a declared value not exceeding €150, regardless of business model.
For standard (H1) declarations the €150 threshold is based on customs value; for simplified (H7) declarations it uses intrinsic value, with periodic accounting rules per ADM Circular Letter No. 37/2025.
Fees for January and February 2026 shipments are deferred and payable on 15 March 2026, as per Circular Letter no. 1/D/2026.
Primary source
Read the full article at TwoBirdsThis summary was published on VATfaqs.com on 4 February 2026. It relates to VAT developments in Italy. The original source is TwoBirds.
