What is being decided?
The Commission proposes that the Council extend Italy’s authorisation to keep a special VAT split-payment derogation for certain supplies, rather than applying the standard VAT payment and invoicing rules.
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European UnionEuropean Commission17 Jun 2026
Council implementing decision on Italy’s VAT derogation
Official titleProposal for a COUNCIL IMPLEMENTING DECISION amending Implementing Decision (EU) 2017/784 authorising t...
Proposal for a COUNCIL IMPLEMENTING DECISION amending Implementing Decision (EU) 2017/784 authorising the Italian Republic to apply a special measure derogating from Articles 206 and 226 of Directive 2006/112/EC on the common system of value added tax
This proposal would amend an existing Council implementing decision so Italy can continue applying a special VAT measure under Directive 2006/112/EC.
Selected official stepProposal published
- Actor
- European Commission
- Date
- 17 Jun 2026
- Record
- EUR-Lex document
Policy journeyProposal published
Understand the proposal
Six questions, grounded in the official record.Who could be affected?
The measure directly concerns suppliers to public authorities and state-controlled companies in Italy, while the Commission and Council are the institutions handling the authorisation.
Why is this proposed?
Italy seeks the extension because it says the split-payment mechanism, together with electronic invoicing, is needed to combat VAT fraud in the sectors concerned.
Where would it apply?
It would apply in Italy, within the VAT rules for supplies to public authorities and state-controlled companies covered by the derogation.
When could it matter?
The file is a Commission proposal, dated 17 June 2026, and it is still at the proposal stage rather than adopted law.
How would it work?
The mechanism works by splitting each payment: the supplier receives the net amount, and the VAT is paid into a separate tax-office account.
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