Italy Extends Split‑Payment VAT Regime Until 2029

The Italian Ministry of Economy and Finance announced that the split‑payment mechanism for value‑added tax will continue beyond the previous June 2026 deadline. The extension, authorized by the European Commission and awaiting formal approval by the EU Council (expected by 10 July), allows the regime to remain in force until 30 June 2029 for entities already subject to it. No procedural changes or suspensions are foreseen, and the relevant beneficiary lists stay available on the Finance Department’s portal.

The measure, originally introduced to curb tax fraud and evasion, separates the VAT amount from the supplier’s invoice payment, requiring public‑sector buyers to remit the tax directly to the treasury. The extension aims to preserve this anti‑fraud tool while providing continuity for businesses that rely on the system.