Italian Revenue Agency tax administration updates

The Italian Revenue Agency (Agenzia delle Entrate) has introduced new regulatory measures and digital procedures to enhance tax compliance and administration.

In August 2026, the agency issued Circular No. 4/E, which establishes operational rules for the 2026-2027 biennial preventive tax agreement. This update includes a revision of 173 ISA models and 85 sector indicators to better align with current macroeconomic dynamics. The guidelines aim to link ISA data directly to proposed taxable bases while prohibiting artificial accounting adjustments used to manipulate scores.

Following these updates, the agency implemented a new procedure for the automatic liquidation of VAT. This measure, stemming from the 2026 Budget Law, allows the agency to reconstruct a taxpayer’s position using electronic invoices, electronic payments, and periodic settlements if annual declarations are missing or incomplete. Taxpayers notified of these calculations have 60 days to rectify errors or settle payments, with failure to comply potentially resulting in a penalty of 120% of the tax due plus interest.