New Italian Unified VAT Code approved

Italian new Unified VAT Code (Legislative Decree No. 10/2026), officially titled the Testo Unico IVA, is scheduled to take effect on 1st January 2027. This reform consolidates over 50 years of fragmented legislation into a single, coherent framework aligned with European Union standards.

 Core Objectives and Structure
The primary goal of the 2027 reform is “compilative”—unifying existing rules rather than introducing massive substantive changes to tax rates or liability.

– The code merges rules previously scattered across various laws, primarily the historic Presidential Decree No. 633/1972 and Decree-Law No. 331/1993, into one text of 171 articles.

– The structure is reorganised into 18 titles to mirror EU Directive 2006/112/EC, enhancing legal clarity for international businesses.

– It formally embeds digital compliance tools, such as mandatory e-invoicing and pre-filled returns, directly into the core legislative text.

Key Provisions Effective 1st January 2027
While much of the text transposes existing law, several operational and technical updates will commence on the effective date:

– Digital Export Documentation:
Article 45 of the new code mandates exclusively digital customs evidence via the Automated Export System (AES) to prove goods have left the EU, replacing older paper-based forms.

– Digital Service Rules:
The code formalises “place-of-supply” rules for digital services, specifically clarifying VAT obligations for streamed events.

Consolidated Invoicing & Refunds:
Regulations regarding invoicing, registration, tax settlement, and refunds previously treated in separate legal instruments are now unified under the single code.

Repeal of Legacy Laws:
All previous VAT-specific decrees and conflicting historical amendments will be officially repealed as of 1st January 2027.