Prepared by Alessia Zanatto, Francesco Pizzo, Lorenzo Ontano, Anna Rossodivita, Marta Marrapodi, Federica Nozza, Federica Stranieri
Law no. 199/2025, concerning the “Budget of the State for the financial year 2026 and multiannual budget for the period 2026–2028” (here in after “Budget Law”), has been published in the Official Gazette no. 301 on December 31, 2025. In this document, we briefly analyze the most significant new provisions introduced regarding VAT, customs, and excise duties.
Paragraphs 82–101 (Facilitated settlement of debts assigned to the collection agent)
Paragraphs 82–101 concern the facilitated settlement (the so called‑ “Rottamazione ‑quinquies”) for debts arising from individual items (i.e. settleable liabilities) entrusted to the enforcement agents between January 1, 2000 and December 31, 2023, deriving from the non‑payment of taxes resulting, among other things and for the purposes relevant here, from annual tax returns and from the control activities referred to in articles 54‑bis and 54‑ter, Presidential Decree no. 633/1972 (i.e., automated assessment and formal control activities).
These debts may be extinguished by paying the amounts due as principal and the amounts accrued as reimbursement of expenses for enforcement procedures and for the notification of the tax collection notice, without paying, instead, the sums entrusted to the collection agent as interest and penalties, the late payment interest referred to in article 30, Presidential Decree no. 602/1973, and the amounts accrued as collection fees pursuant to article 17, Legislative Decree no. 112/1999.
Payment of the amounts due must be made by July 31, 2026 in a single instalment. It is possible to pay the amounts due in instalments, up to a maximum of 54 bimonthly instalments of equal amounts. In the event of payment in instalments, interest at the annual rate of 3% is due starting from August 1, 2026.
The collection agent shall make available to debtors, in the private area of its institutional website, the data necessary to identify the eligible items.
The debtor shall notify the collection agent, exclusively by electronic means, of the intention to proceed with the settlement in question through a specific declaration submitted by April 30, 2026. Specifically, the FAQs published on January 20, 2026 on the Italian tax authorities’ website clarified that two alternative methods are available for submitting the application: (i) by accessing the taxpayer’s reserved area; or (ii) by completing the dedicated form available on the Italian tax authorities’ website and attaching the required supporting documentation.
Paragraph 111 (VAT settlement in case of omitted return)
Paragraph 111, letter a), introduced article 54‑bis.1 into Presidential Decree no. 633/1972, entitled “VAT assessment in the case of omitted tax returns.”
According to the first paragraph of the aforementioned Article 54‑bis.1, ‑ in the event of failure to file the annual VAT return, the Italian Tax Authorities, within the deadline referred to in article 57, paragraph 2, Presidential Decree no. 633/1972 (i.e., by 31 December of the seventh year following the year in which the return should have been filed), may proceed with the assessment of the tax, including through automated procedures, on the basis of the electronic invoices issued and received, the telematic receipts transmitted, and the information resulting from the periodic VAT return communications (i.e. Communications of the VAT settlements).
For the above purposes, returns filed more than ninety days late are considered omitted, as provided for by article 2, paragraph 7, Presidential Decree no. 322/1998. Furthermore, article 54‑bis.1, paragraph 1, provides that a return is also considered omitted if it is filed within such timeframe but without completing the sections required for assessing the tax due.
When carrying out the assessment, any VAT credit resulting from the return filed for the period preceding the one under assessment shall not be considered, and only payments actually made may be deducted from the tax due.
Paragraph 2 of Article 54‑bis.1 establishes that, when the checks carried out reveal VAT due, the outcome of the assessment is communicated to the taxpayer, who, within the following 60 days, may either report any data or elements that were not considered or were incorrectly assessed, or proceed with the payment of the tax due together with the interest and penalties set out in paragraph 3 of the same article. If the taxpayer does not respond, or if the information provided is not sufficient to update the amount assessed, the sums due as tax, penalties and interest are directly entered into the tax assessment on a definitive basis under article 14, Presidential Decree no. 602/1973. If the information provided by the taxpayer results in a different amount of tax due, the new outcome of the assessment shall be communicated, with a further 60‑day period allowed to submit observations or to pay the amount requested.
Offsetting provided by article 17, Legislative Decree no. 241/1997 is not permitted for the payment of the amounts due. It is further clarified that, in the event of enrolment of the sums in the definitive tax assessment, the offsetting provided for under article 31 of Decree ‑Law no. 78/2010 (which restricts self offsetting of tax credits in the presence of definitive tax‑ ‑assessed debts) is not allowed for their payment.
Paragraph 3 of Article 54‑bis.1 provides that, where VAT is due, the penalty for omitted filing of the VAT return under article 5, paragraph 1, Legislative Decree no. 471/1997[1] shall apply, calculated based on the assessed tax. If the taxable person pays the amounts due within the timeframe set out in paragraph 2 (i.e., within 60 days from the communication), the penalty is reduced to one third‑.
Paragraph 4 of Article 54‑bis.1 further provides that the delivery of the communication containing the outcome of the assessment excludes the application of article 5, paragraph 1‑bis, Legislative Decree no. 471/1997[2].
Finally, paragraph 5 of Article 54‑bis.1 establishes that the methods for communicating the results of the assessments and the data to be used for carrying them out shall be defined in a specific implementing measure issued by the Director of the Italian tax authorities.
Letters b) and c) of paragraph 111 introduced coordination provisions, thereby adapting the content of the penalty rules set out in article 5, paragraph 1, Legislative Decree no. 471/1997[3] and article 30, paragraph 1, Legislative Decree no. 173/2024[4].
Paragraphs 119-124 (Excise duties on manufactured tobacco and consumption taxes on tobacco product substitutes)
Paragraph 119, letter a) amends the regulations on excise duties for manufactured tobacco, providing for a progressive increase in the minimum fixed amount of excise duties on cigarettes, cigarillos, and fine-cut tobacco from 2026 to 2028. The minimum tax burden for cigarettes is established in relation to a specific fixed amount per product unit.
With regard to payment’s deadlines for excise duties on manufactured tobacco and consumption tax on tobacco product substitutes, letters b) and e) amend Article 39-decies, paragraph 3, of the Consolidated Excise Duty Act (TUA), establishing that they must be paid by:
- The 16th of the month following the month in which tobacco products were released for consumption;
- August 20th, for products released for consumption in July;
- December 27th, for products released for consumption in the first fifteen days of December.
Letters c) and d) redefine the coefficients for calculating excise duties on heated tobacco products, as well as the consumption tax on electronic cigarettes, with or without nicotine.
Letter f) amends the excise duty rates on manufactured tobacco (i.e., cigarettes, cigarillos, fine-cut tobacco).
Paragraph 119, letter g) introduces new regulations for the so-called nicotine pouches, requiring that shipments between authorized warehouses must be reported quarterly to the Customs Authorities, as well as the prohibition of their remote sales including cross-border.
Finally, letter h) grants the Director of the Customs Authorities the power to issue a ruling containing the procedures for calculating and paying the consumption tax.
Paragraphs 120-123 establish additional provisions on nicotine pouches. These products must display on their outer packaging information about ingredients, the quantity of nicotine contained in the pouches, usage warnings, and health warnings. Their sale to minors is prohibited, and it is subject to the use of child-resistant and tamper-proof closure systems. Non-compliant products may be properly disposed of.
Finally, paragraph 124 provides that the provisions on payment deadlines referred to in the letters b), e), and f) apply to products released for consumption from January 1, 2026.
Paragraph 125 (Postponement of the entry into force of the plastic and sugar tax)
Paragraph 125 postpones the entry into force of the tax on single use manufactured products (plastic tax) from July 1, 2026, to January 1, 2027, and the tax on sweetened non-alcoholic beverages (sugar tax) from January 1, 2026, to January 1, 2027.
Paragraphs 126-128 (Contribution for customs administrative expenses on small shipments)
Paragraphs 126-128 establish a “contribution to cover administrative expenses related to customs formalities for low-value shipments coming from third countries“, set at 2 euros per consignment.
The above-mentioned contribution is collected directly by the Customs Authorities upon final importation and applies only to shipments with a declared value equal to or less than 150 euros originating from non-EU third countries.
It is owed by the declarant or by the person on whose behalf the customs declaration is made and applies to all types of commercial transactions, including those sent between private individuals, even if they are not of a commercial nature.
Paragraph 129 (Alignment of excise duties on gasoline and diesel used as fuel)
Paragraph 129 establishes that excise duty rates on gasoline and diesel used as fuel shall be aligned at 672.90 euros per thousand liters. Fuels used for agricultural purposes, for machinery or stationary engines used in industrial facilities, or for machines handling goods in ports are excluded from the excise duty increase.
Paragraphs 138–139 (VAT Taxable base for barter transactions and payments in kind)
Paragraph 138 amends article 13, paragraph 2, letter d), Presidential Decree no. 633/1972, providing that, for the purpose of determining the VAT taxable base of barter transactions, reference must be made to all costs incurred by the supplier that are attributable to the supply of goods or services, rather than to the normal value of the goods supplied or services rendered. Furthermore, paragraph 139 establishes that this amendment applies exclusively to transactions carried out for VAT purposes after the entry into force of the Budget Law (i.e. January 1, 2026), and that prior practices adopted before that date remain valid[5].
Paragraph 859 (Reduction of excise duty on beer)
Paragraph 859 reduces the excise duty on beer to 2.98 euros per hectoliter and per Plato- degree for the years 2026-2027, while for 2028 and subsequent years it is set at 2.99 euros.
Paragraphs 934–936 (Simplifications for VAT on sales to non-EU residents)
Paragraphs 934–936 amend the rules governing the so ‑called “tax free‑ shopping”, i.e., the VAT relief on supplies of goods intended for personal or family use by individuals domiciled and resident outside the European Union. In particular, the Budget Law has amended:
(i) article 4‑bis, Decree ‑Law no. 193/2016, by adding the new paragraph 2‑bis, which provides that, by order of the Director of the Customs and Monopolies Agency, in agreement with the Director of the Italian tax authorities, to be issued within 120 days from the entry into force of the Budget Law, the procedures shall be established to simplify the process to VAT refund requests at the time of exit from the customs territory. Specifically, such procedures must entail a single validation process for all invoices issued electronically by the supplier and towards the same purchaser;
(ii) article 38‑quarter, Presidential Decree no. 633/1972[6], providing that the deadline for returning to the supplier the invoice stamped by customs (which certifies the exit of the goods from the EU) is extended from 4 months to 6 months from the date of the transaction.
[1] Pursuant to article 5, paragraph 1, Legislative Decree no. 471/1997: “1. In the event of failure to file the annual value added tax return, an administrative penalty equal to 120 percent of the amount of tax due for the tax period, or for the transactions that should have been reported in the return, shall apply, with a minimum of Euro 250. In determining the tax due, all payments made for the period, the credit from the previous year for which a refund has not been requested, as well as the deductible VAT resulting from duly performed periodic settlements shall be taken into account. In the event of failure to file the return required of taxpayers applying the special schemes referred to in articles 70.1 and 74‑quinquies to 74‑septies of Presidential Decree no. 633 of 26 October 1972, the penalty referred to in the first sentence shall be calculated on the amount of tax due in the territory of the State that should have been reported in the return. If the return required of taxpayers applying the special schemes referred to in articles 70.1 and 74‑quinquies to 74‑septies of Presidential Decree no. 633 of 26 October 1972 is filed within three years from the date on which it should have been filed, a penalty equal to 45 percent of the amount of tax due in the territory of the State for the period covered by the return shall apply, with a minimum of Euro 200. If the return referred to in the preceding sentence is filed by the deadline for filing the return relating to the following period, a penalty equal to 25 percent of the amount of tax due in the territory of the State for the period covered by the return shall apply, with a minimum of Euro 100”.
[2] Pursuant to Article 5, paragraph 1‑bis, of Legislative Decree no. 471/1997: “If the omitted return is filed more than ninety days late but within the time limits set out in article 57 of Presidential Decree no. 633 of 26 October 1972, and in any case before the taxpayer has had formal knowledge of inspections, audits, examinations, or the commencement of any administrative assessment activity, the penalty provided for in article 13, paragraph 1, increased threefold, shall apply on the amount of tax due. If no tax is due, the minimum penalty referred to in paragraph 1, first sentence, shall apply”.
[3] The following sentence is added: “In the event that the assessment communication referred to in article 54‑bis.1 of Presidential Decree no. 633 of 26 October 1972 has been issued, the tax due shall be understood as the difference between the amount of tax assessed pursuant to the assessment and the amount already assessed under paragraph 1 of the same article 54‑bis.1”.
[4] The following sentence is added: ‘In the event that the assessment communication referred to in article 54‑bis.1 of Presidential Decree no. 633 of 26 October 1972 has been issued, the tax due shall be understood as the difference between the amount of tax assessed pursuant to the assessment and the amount already assessed under paragraph 1 of the same article 54‑bis.1”.
[5] Among the proposed amendments during the conversion into law of Decree-Law no. 200/2025 (the so‑called ‘Milleproroghe Decree’), reference is also made to a potential postponement to July 1, 2026 for the purposes of applying the aforementioned new provision or, alternatively, to its repeal. However, the outcome of these amendments is uncertain.
[6] Pursuant to Article 38‑quarter, Presidential Decree no. 633/1972: “1. Supply of goods to persons domiciled or resident outside the European Community for a total amount, including VAT, higher than Euro 70 intended for personal or family use, to be transported in the personal luggage outside the customs territory of the same Community, may be carried out without payment of VAT. This provision is applied provided that an invoice is issued and that the goods are transported outside the Community within the third month after carrying out of the transaction. The copy of the invoice delivered to the buyer must be returned to the seller, bearing the passport or other equivalent document details to affix prior to obtaining the customs approval, the approval of the customs office exit from the Community, within the fourth month following the transaction; failing to return this document, the seller must proceed to the regularization of the transaction according to article 26, first paragraph, within one month from the expiry date of the aforementioned terms. 2. For supplies in relation to paragraph 1, for which the seller has not made use of the right provided therein, the buyer has the right to be refunded the VAT paid as offset provided that the goods are transported outside the Community within the third month following the purchase and that a copy of the invoice approved by the customs office is returned to the seller within the fourth month following the transaction. The refund is carried out by the seller who has the right to recover the tax by means of an annotation of the corresponding change in the register pursuant to article 25”.
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