Global Daily Tax News, Italian Cabinet Agrees VIDA VAT Law Amendments, (Aug 20, 2026)

Italy's Cabinet has recently approved legislation to transpose into domestic law the provisions from the EU VAT in the Digital Age package (Council Directive (EU) 2025/516).

The VIDA reform package was formally adopted in March 2025 and will be phase ...

Italy's Cabinet has recently approved legislation to transpose into domestic law the provisions from the EU VAT in the Digital Age package (Council Directive (EU) 2025/516).

The VIDA reform package was formally adopted in March 2025 and will be phased in gradually through 2035. The key changes discussed in the work program cover the following implementation milestones:

From January 1, 2027, the One Stop Shop will be further extended to allow the inclusion of B2C supplies in the e-charging sector. Certain legislative clarifications for users of the One Stop Shop (OSS) and Import One Stop Shop (IOSS) schemes will also become effective;
From July 1, 2028, platforms in the short-term accommodation rental and passenger transport by road sectors must comply with new deemed supplier measures, while the main Single VAT Registration (SVR) reforms including mandatory reverse charge for non-established suppliers will begin;
From July 1, 2030, cross-border B2B transactions will be subject to new Digital Reporting Requirements (DRR) based on mandatory e-invoicing and e-invoicing will become the default method for invoicing; and
By January 1, 2035, member states with a domestic digital real-time transaction reporting obligation must align their systems with the cross-border digital reporting system, marking the final phase of this comprehensive ViDA package.

The Italian Government said the Decree primarily deals with changes coming into force from January 1, 2027, and clarifies rules regarding sales made through platforms, portals, and electronic marketplaces.

The legislation also clarifies rules regarding the calculation of the reduced, EUR10,000 intra-EU distance-selling threshold for the application of the destination principle to distance sales of goods and/or telecommunications, broadcasting, and electronic (BTE) services, as provided for in the EU's earlier e-commerce VAT package.

The measure also addresses the coordination between the special VAT regimes and the special regime for small businesses, as well as tax refund procedures, the Government said.

Global Daily Tax News, Italian Cabinet Agrees VIDA VAT Law Amendments, (Aug 20, 2026)

Italy's Cabinet has recently approved legislation to transpose into domestic law the provisions from the EU VAT in the Digital Age package (Council Directive (EU) 2025/516).

The VIDA reform package was formally adopted in March 2025 and will be phase ...

Italy's Cabinet has recently approved legislation to transpose into domestic law the provisions from the EU VAT in the Digital Age package (Council Directive (EU) 2025/516).

The VIDA reform package was formally adopted in March 2025 and will be phased in gradually through 2035. The key changes discussed in the work program cover the following implementation milestones:

From January 1, 2027, the One Stop Shop will be further extended to allow the inclusion of B2C supplies in the e-charging sector. Certain legislative clarifications for users of the One Stop Shop (OSS) and Import One Stop Shop (IOSS) schemes will also become effective;
From July 1, 2028, platforms in the short-term accommodation rental and passenger transport by road sectors must comply with new deemed supplier measures, while the main Single VAT Registration (SVR) reforms including mandatory reverse charge for non-established suppliers will begin;
From July 1, 2030, cross-border B2B transactions will be subject to new Digital Reporting Requirements (DRR) based on mandatory e-invoicing and e-invoicing will become the default method for invoicing; and
By January 1, 2035, member states with a domestic digital real-time transaction reporting obligation must align their systems with the cross-border digital reporting system, marking the final phase of this comprehensive ViDA package.

The measure also addresses the coordination between the special VAT regimes and the special regime for small businesses, as well as tax refund procedures, the Government said.