Italy Publishes Consolidated VAT Act

Italian Testo Unico IVA Reform

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.

Italy has taken an important step in the ongoing reform of its tax system with the publication of Legislative Decree No. 10/2026, introducing a new Consolidated VAT Act (Testo unico IVA). The decree was published in the Official Gazette No. 24 of 30 January 2026 (Ordinary Supplement No. 4). While the decree formally entered into force on 31 January 2026, the new consolidated VAT rules will generally apply from 1 January 2027.

The reform forms part of the broader restructuring of the Italian tax system, which aims to simplify and rationalise existing tax legislation.

Here’s what you need to know.

A Single Legislative Framework for VAT

The new Consolidated VAT Act brings together into a single legislative framework the VAT rules that are currently spread across multiple provisions, most notably:

• Presidential Decree No. 633/1972, which currently contains the core Italian VAT legislation
• Decree-Law No. 331/1993, converted into Law No. 427/1993, which introduced additional VAT provisions, particularly relating to intra-EU transactions
• Various other sector-specific measures.

By consolidating these rules into a single legislative text, the reform aims to improve clarity, accessibility, and consistency in the Italian VAT system.

Reorganisation of Core VAT Procedures

A central objective of the new decree is the reorganisation and rationalisation of operational VAT rules, particularly those governing key compliance obligations.

The new consolidated text focuses in particular on the provisions relating to:

• VAT invoicing
• Registration of transactions
• Export procedures
• VAT refunds

These areas represent the core operational aspects of VAT compliance for businesses and tax administrations. Bringing them together into a coherent structure is intended to facilitate interpretation and application of the rules. Find below further information on three areas of the VAT compliance included in the consolidated VAT Act.

1. 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.

2. 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.

3. 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.

Provisions Excluded from Testo Unico IVA

Not all provisions currently included in Presidential Decree No. 633/1972 have been transferred into the new Consolidated VAT Act.

In particular, rules relating to tax assessments and enforcement procedures have been excluded. This exclusion is consistent with the criteria established by Delegated Law No. 111/2023, which provides for a broader restructuring of the Italian tax system and the separation of substantive tax rules from procedural provisions.

As a result, certain procedural rules will remain governed by other legislative instruments rather than being incorporated into the new consolidated VAT text.

Entry into Application from 2027

Although Legislative Decree No. 10/2026 formally entered into force on 31 January 2026, the substantive provisions of the new Consolidated VAT Act will generally apply from 1 January 2027.

The transitional period is intended to allow businesses, tax professionals, and the tax administration sufficient time to prepare for the restructured legislative framework.

Previous Steps

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.

Practical Implications for Businesses

For businesses and VAT compliance teams operating in Italy, the new Consolidated VAT Act does not immediately introduce substantive changes to VAT rules. Instead, it represents a systematic reorganisation of existing legislation.

However, from 2027 onwards, VAT compliance will need to be referenced against the new consolidated structure, rather than the current fragmented framework. Businesses should therefore monitor the implementation of the new text and prepare to update internal references, compliance documentation, and technical guidance accordingly.

Find here the official press release from the Italian Government. Also, take a look at the new Testo Unico IVA.