Italy implements Omnibus 2026 corrective tax decree

The Omnibus 2026 corrective decree, published in the Official Gazette on August 11, 2026, and effective as of August 12, introduces several updates to the Italian tax system. The measure aims to improve the coherence and applicability of recent tax reforms, affecting income tax, inheritance and gift tax, VAT, and excise duties.

Key changes include revisions to the rules for determining family dependents to correct unintended consequences regarding cohabitation and alimony requirements. The decree also addresses fringe benefits, specifically regarding the taxation of company cars, and introduces updates for VAT-registered businesses concerning biennial preventive agreements.

Regarding VAT, the decree doubles the time allowed for recovering VAT on invoices, restoring a system that permits deductions within the second year following the right's emergence. This change aligns Italian regulations with European Union standards and responds to professional requests for more time to ensure accurate controls. Additionally, the decree simplifies rules for invoices issued at the end of one year but received at the beginning of the next.