Italy introduces new tax exemptions and regularization options

New fiscal regulations in Italy are introducing significant changes for vehicle owners and VAT holders. Under Decree Law 162/2026, an exemption from the car tax (bollo auto) has been introduced for vehicles with power up to 80 kW.

The Automobile Club d'Italia (ACI) has clarified that the exemption applies to payments whose ordinary deadline falls between January 1 and December 31, 2027. For example, if a tax payment is due by December 31, 2026, the full amount must still be paid, even if the renewal covers months in 2027. However, if the ordinary deadline for a tax due on December 31, 2026, is January 2027, that renewal falls under the exemption.

Additionally, VAT holders who participated in the biennial preventive agreement for 2024-2025 and renew for 2026-2027 can utilize a special regularization process (ravvedimento speciale) to settle taxes for the years 2020-2023. This option allows for the payment of substitute taxes, potentially in installments, and is available from January 1 to March 15, 2027. This applies to taxpayers using Synthetic Indices of Tax Reliability (ISA) or those who declared exclusions due to the Covid emergency.