Italy’s New VAT Code: What to Expect from the 2026 Reform

From January 1, 2026, Italy will have a completely restructured VAT framework. The long-awaited Testo Unico IVA (New VAT Code) brings together decades of scattered legislation into one single, organized body of rules. It simplifies how businesses and professionals apply VAT and introduces several operational changes that companies—especially those engaged in international trade—must prepare for.

Here’s what you need to know.

Italian VAT Code by January 2026

For years, Italian VAT rules were spread across multiple laws, primarily Presidential Decree No. 633/1972 and Legislative Decree No. 331/1993. This led to inconsistencies and interpretation challenges.

On July 14, 2025, the Italian Council of Ministers preliminarily approved a draft legislative decree that consolidates these rules into a single law with 171 articles across 18 titles, aligning the structure with the EU VAT Directive (2006/112/EC). The reform is part of the broader fiscal restructuring under Law No. 111/2023.

This is not just a formal exercise—it simplifies the legal structure and makes the VAT rules easier to navigate. Find below some of the key adjustments.

Export Procedures: Digital Proof Required

One of the most significant changes affects exports outside the EU. The current rule (Article 8 of DPR 633/72) allowed multiple ways to prove that goods had exited the EU. Under the new rules (Article 45 of the Testo Unico), this is changing so only digital customs proof will be accepted—no more reliance on paper documents like the “bolla di accompagnamento"-.

Exporters will now need to use the Automated Export System (AES) to provide official proof of exit, as per EU Regulation 2447/2015. This move aligns Italian rules with EU customs procedures.

E-Invoicing in the Italian VAT Code

Another key advancement is the full integration of electronic invoicing and data reporting into the VAT law. For the first time, the following rules are consolidated in one place:

• E-invoice issuance, transmission, and storage
• Digital reporting of daily receipts (corrispettivi telematici)
• Pre-filled VAT returns

This reflects the government’s commitment to streamlining tax compliance through technology and reducing the administrative burden on businesses.

New Rules for Digital Services

The Testo Unico also formalizes several recent innovations, including the place of supply rules for streaming events. These new rules clarify where VAT is due for online events and align Italian law with EU guidelines for the digital economy.

This is an important step forward in addressing the complexity of VAT in digital services and cross-border e-commerce.

Learn more about the new place of supply rules for live streamed events in the EU.

Find here the official press release from the Italian Government.