New VAT Consolidated Act: what changes for rates from 2027
From 1 January 2027, the new VAT Consolidated Act (Legislative Decree No. 10/2026) will enter into force, providing an organic reorganization of VAT rates. The Tables have been renumbered while preserving the current structure, with reduced rates of 4%, 5% and 10% identified in specific sections. A key innovation concerns the update of goods classifications, now aligned with current TARIC codes, replacing the outdated references to the 1973 customs tariff. The VAT exemption for certain food products has also been abolished, as they are now consistently included among goods subject to reduced rates. Significant changes affect the real estate sector, where the concept of “non-luxury dwellings” is replaced by a criterion based on cadastral categories (excluding A/1, A/8 and A/9). This reform is part of the broader tax reform process set out by Law No. 111/2023, which may lead to further revisions of VAT rates.
Global minimum tax: data reporting from 30 June 2026
With Provision No. 112451 of 9 April 2026, the Italian Tax Office defined the procedures for submitting the communication required for the global minimum tax (Art. 11 of Ministerial Decree of 16 October 2025). The obligation applies to Italian resident entities belonging to multinational or domestic groups with consolidated revenues of at least €750 million (Legislative Decree No. 209/2023). The communication includes the information necessary to determine the top-up tax due in low-tax jurisdictions and must follow the standard template set out in Annex 1 of the Ministerial Decree. Data must be reported in the currency used in the consolidated or statutory financial statements. The filing deadline is the fifteenth month following the end of the relevant fiscal year, extended to eighteen months during the transitional period. For the first application, the deadline cannot be earlier than 30 June 2026. Submission is carried out via Entratel or Fisconline, also through authorized intermediaries. An automatic exchange of information with foreign tax authorities is also foreseen.
“Dynamic” holding companies: limited VAT obligations for exempt transactions
The VAT treatment of holding companies depends on the activities performed: “static” holdings, which merely hold participations, are not considered VAT taxpayers (Art. 4 Presidential Decree 633/72). Conversely, “dynamic” holdings that carry out financial management or intervene in subsidiaries qualify as taxable persons. However, transactions involving securities, such as the trading of shares and bonds, are generally VAT-exempt (Art. 10, para. 1, no. 4). In such cases, there is no obligation to issue invoices unless requested by the customer (Art. 22 Presidential Decree 633/72), nor to transmit transaction data. These operations remain relevant for turnover calculation and reporting obligations. Taxpayers carrying out only exempt transactions may opt for relief from VAT compliance obligations (Art. 36-bis Presidential Decree 633/72).
Non-existent transactions: stricter burden of proof on taxpayers
With judgment No. 5195/9/2025, the Milan Tax Court confirmed that where suppliers qualify as “shell companies,” transactions are presumed to be non-existent. It is sufficient for the tax authorities to prove the lack of operational structure of the issuer to shift the burden of proof entirely onto the taxpayer. Invoices, bank transfers or accounting entries are not considered sufficient evidence, as they can be easily falsified. Good faith is also deemed irrelevant in cases of objectively non-existent transactions, in line with settled Supreme Court case law. From a VAT perspective, this results in the denial of input VAT deduction due to lack of business purpose. This ruling confirms a strict judicial approach in combating tax fraud.
Intragroup costs: deductibility linked to actual benefit and proper documentation
With Order No. 10456/2026, the Italian Supreme Court reiterated that intragroup service costs are deductible only if they are real and adequately documented. Contracts or generic invoices alone are not sufficient: taxpayers must prove the nature, existence and business purpose of the costs (Art. 109 TUIR). In particular, the receiving entity must derive a concrete and measurable benefit from the services. Any lack of economic rationale may signal non-deductibility, although it must be proven by the tax authorities. The Court clarified that flat-rate pricing mechanisms do not demonstrate the effective provision of services. Instead, supporting evidence such as documentation, communications and operational details is required. The burden of proof therefore remains on the taxpayer, confirming a strict stance against abusive intragroup practices.
Decommissioning provisions: new classification of discounting effects
The updates to OIC 16 and OIC 31, applicable from 2026, clarify the accounting treatment of decommissioning and restoration provisions. Such provisions must be recognized when the obligation arises, with a corresponding increase in the asset’s cost. Discounting is permitted where the obligation is certain, measurable and long-term. The main change concerns the classification of discounting effects, now explicitly considered financial in nature. These effects must be recognized in Class C of the income statement rather than among operating provisions. A specific item, C.17-ter, has been introduced to distinguish them from other financial items (Art. 2423-ter Civil Code). The changes may also be applied early and, upon first adoption, retrospectively (OIC 29). Decommissioning provisions remain distinct from environmental remediation provisions.
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