(1)

Council Implementing Decision (EU) 2015/1401 (2), authorised Italy, until 31 December 2017, to require that value added tax (VAT) due on supplies to public authorities was to be paid by those authorities to a separate and blocked bank account of the tax authorities (the ‘special measure’). The special measure constituted a derogation from Articles 206 and 226 of Directive 2006/112/EC in relation to VAT payment and invoicing rules.

(2)

Council Implementing Decision (EU) 2017/784 (3) authorised Italy to apply that special measure until 30 June 2020, and broadened its scope to include supplies to certain companies controlled by public authorities and to companies listed on the stock exchange that are included in the Financial Times Stock Exchange Milano Indice di Borsa (‘FTSE MIB’) index. The special measure was further extended until 30 June 2023 by Council Implementing Decision (EU) 2020/1105 (4), and subsequently until 30 June 2026 by Council Implementing Decision (EU) 2023/1552 (5). Under Implementing Decision (EU) 2023/1552, companies listed on the stock exchange were excluded from the scope of the special measure from 1 July 2025.

(3)

By letter registered with the Commission on 9 October 2025, Italy requested an authorisation, in accordance with Article 395(2), first subparagraph, of Directive 2006/112/EC, to continue to apply the special measure until 31 December 2029 (the ‘request’).

(4)

In accordance with Article 395(2), second subparagraph, of Directive 2006/112/EC, the Commission transmitted the request to the other Member States by letter dated 27 April 2026. By letter dated 28 April 2026, the Commission notified Italy that it had all the information necessary for the appraisal of the request.

(5)

The special measure is part of a package of measures introduced by Italy in order to counter tax fraud and evasion. That package of measures, including mandatory electronic invoicing authorised by Council Implementing Decision (EU) 2018/593 (6), has replaced other control measures and allows the Italian tax authorities to cross-check the various transactions declared by taxable persons and to monitor their VAT payments.

(6)

Italy considers that, in the context of the package of measures implemented, mandatory electronic invoicing reduces the time needed by the tax authorities to become aware of the existence of a potential case of tax fraud or evasion. However, Italy also considers that, in the absence of the split payment mechanism introduced by the special measure, the recovery of VAT amounts due from taxable persons engaged in tax fraud or evasion might be impossible after the cross-check has been carried out because, in the meantime, those taxable persons might have become insolvent. Thus, the split payment mechanism, as an ex ante measure, has proved to be highly effective and complementary to mandatory electronic invoicing, which is an ex post measure.

(7)

One of the effects of the special measure is that suppliers, who are taxable persons, are not able to offset the VAT paid on their input with the VAT received on their supplies. Such suppliers can be constantly in a credit position and might need to apply for an effective refund of the VAT paid on their input from the tax authorities. According to the information provided by Italy, taxable persons carrying out transactions subject to the special measure are entitled to receive the payment of the relevant VAT credits as a priority, within the limit of the credit deriving from such transactions. That practice implies that refund applications related to the special measure are processed as a matter of priority both during the preliminary investigation phase and when the amounts due from non-priority refunds are paid.

(8)

In the past, Italy repeatedly committed itself not to seek the renewal of the special measure once the package of measures it intended to apply was fully implemented. However, Italy considers that, given the effectiveness of the special measure and its synergies with other applied measures, in particular with mandatory electronic invoicing, the special measure should be extended to avoid a setback in the efforts made to reduce the overall difference between the expected VAT revenue and the amount actually collected in Italy. The authorisation to apply the special measure should therefore be extended until 30 June 2029. In fact, as authorisations for special measures that derogate from the general VAT rules only constitute a means of last resort, Italy should strengthen its conventional means to counter and prevent VAT fraud and evasion, and, where appropriate, introduce new ones up to the point that a further extension of the special measure would no longer be necessary.

(9)

To ensure the necessary follow-up of the special measure and in particular to assess the impact on VAT refunds to taxable persons covered by the special measure, Italy should submit a report to the Commission by September 2027. That report should address the overall situation of, and in particular the average time needed for, VAT refunds to taxable persons, and the effectiveness of the special measure and any other measures implemented by Italy with the aim of countering tax fraud and evasion in the sectors concerned. That report should include a list of those measures, together with their date of entry into force.

(10)

The special measure is proportionate to the objectives pursued, since it is limited in time and restricted to sectors which pose considerable risks with respect to tax fraud and evasion. In addition, the special measure does not create a risk that tax fraud or evasion would shift to other sectors within Italy or to other Member States.

(11)

The special measure will not negatively affect the overall amount of tax revenue collected at the stage of final consumption, and will have no adverse impact on the Union’s own resources accruing from VAT.

(12)

In order to ensure that the objectives pursued by the special measure are achieved, including the uninterrupted application of the special measure, and to provide legal certainty with regard to the tax period, it is appropriate to grant an authorisation to extend the special measure with effect from 1 July 2026. As Italy requested authorisation on 9 October 2025 to continue to apply the special measure and has continued to apply the legal regime established in its national law on the basis of Implementing Decision (EU) 2017/784 from 1 July 2026, the legitimate expectations of the persons concerned are duly respected.

(13)

Implementing Decision (EU) 2017/784 should therefore be amended accordingly,

(1)

in Article 3, second paragraph, the date ‘30 September 2024’ is replaced by the date ‘30 September 2027’;

(2)

in Article 5, the date ‘30 June 2026’ is replaced by the date ‘30 June 2029’.