What is being decided?
The Commission proposes that the Council amend Decision 2007/441/EC to keep Italy’s special VAT derogation in place and extend it until 31 December 2028.
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European UnionEuropean Commission8 Dec 2025
Council implementing decision on Italy’s VAT derogation
Official titleProposal for a COUNCIL IMPLEMENTING DECISION amending Decision 2007/441/EC authorising the Italian Repu...
Proposal for a COUNCIL IMPLEMENTING DECISION amending Decision 2007/441/EC authorising the Italian Republic to apply measures derogating from Articles 26(1)(a) and 168 of Directive 2006/112/EC on the common system of value added tax
This proposal would amend an existing Council decision that lets Italy apply measures departing from parts of the EU VAT Directive.
Selected official stepProposal published
- Actor
- European Commission
- Date
- 8 Dec 2025
- Record
- EUR-Lex document
Policy journeyProposal published
Understand the proposal
Six questions, grounded in the official record.Who could be affected?
Italy is the Member State directly concerned, and the rule applies to the taxable persons and tax administration covered by that derogation.
Why is this proposed?
The Commission says the extension is justified because the 40% limit still fits Italy’s circumstances and helps simplify VAT collection and prevent tax evasion.
Where would it apply?
It would apply only in Italy, under EU VAT rules, to specified motorised road vehicles and related expenditure.
When could it matter?
The file is a Commission proposal dated 24 October 2025, and the Council is the institution that would have to act on it.
How would it work?
It would work by Council authorisation under the VAT Directive, amending the earlier decision and keeping the Italian derogation time-limited.
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