A Council note of 30 June 2026 proposes the adoption of an amended implementing decision authorising Italy to apply a special VAT measure derogating from Articles 206 and 226 of the VAT Directive. The decision, finalised by legal and linguistic experts and set out in document 10872/26, is scheduled for adoption as an 'A' item on the Council agenda on 8 July 2026, following no objections from the Working Party on Tax Questions.
The amendment updates Implementing Decision (EU) 2017/784, which originally granted Italy a derogation from VAT payment and invoicing rules. The measure allows Italy to simplify tax compliance for certain transactions, potentially easing administrative burdens for businesses. However, it may also affect VAT revenue collection and cash flow for Italian firms due to modified payment and invoicing obligations.
The decision, once adopted, will be published in the Official Journal of the European Union, ensuring legal certainty. This development could set a precedent for other Member States seeking similar derogations from the VAT Directive. The Council is expected to formally adopt the decision without debate on 8 July 2026.