The European General Court dismissed an Italian association’s challenge to EU VAT directives that impose a deemed‑supplier model on digital platforms for short‑term accommodation rentals. The court held the association lacked direct and individual concern, as the rules target platform operators, not property owners. The decision confirms the applicability of Directive (EU) 2025/516 and Regulation (EU) 2025/518.
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1stopVAT · 18 days ago
A Milan Tax Court decision on 20 January 2026 clarified that direct sales made under consignment agreements are not subject to Italy’s Digital Services Tax (DST). The ruling confirms that the 3% DST applies only to digital intermediation activities and that companies meeting the turnover thresholds are liable. The court also upheld a refund claim for over‑EUR 1 million of over‑paid DST for the 2020‑2022 period.
Vertex Inc · about 1 month ago
Italy’s mandatory B2B e‑invoicing via the SDI platform has exposed high first‑pass rejection rates driven by master‑data errors, highlighting the need for a tax engine to ensure real‑time compliance. The article quantifies savings of €37 per invoice and a drop in rejection rates to about 5% when a tax engine is used. It underscores that even mature markets like Italy still face significant data quality challenges that a tax engine can address.
VatCalc · about 2 months ago
Italy has amended its 2026 barter VAT rules, replacing the cost‑based valuation model with a contractual value approach. The change, effective 1 January 2026, requires the taxable amount to reflect the parties’ agreed monetary value but not fall below the supplier’s direct costs, and applies retroactively to contracts from that date while protecting earlier invoices.
StudioLegalEbianucci · about 2 months ago
The Court of Cassation’s Order no. 17536/2025 clarifies that formal violations of VAT bookkeeping and invoice preservation do not automatically bar the right to deduction, provided substantive obligations are met. The ruling sets two exceptions—fraudulent intent or inability to prove substantive compliance—under which deduction is denied. It reinforces the principle of fiscal neutrality while maintaining sanctions for formal non‑compliance.
Meridian Global Services · about 2 months ago
From 1 January 2026, Italy has enacted a new automated VAT assessment regime for omitted annual returns, allowing the tax authority to calculate VAT due using e‑invoicing and other digital data. The automated determination must be completed by 31 December of the seventh year following the missing return, and penalties are capped at 120% of VAT due, reducible to one‑third if paid within 60 days of notice.
The Invoicing Hub · about 2 months ago
Italy’s e‑invoicing system will adopt new SDI technical specifications effective 15 May 2026, adding VAT‑group checks, expanded accreditation limits, and a sports‑worker exemption code. The ViDA directive will require Italy to shift from its centralized SdI model to a decentralized reporting architecture by 1 January 2035, and to adopt the EN16931 standard. These changes affect ERP vendors, e‑invoicing service providers, and all businesses issuing electronic invoices in Italy.
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Key Takeaways
The court dismissed the action as inadmissible, ruling that the Italian association lacked both direct and individual concern under the challenged VAT provisions.
Council Directive (EU) 2025/516 and Council Implementing Regulation (EU) 2025/518, which introduce a deemed‑supplier model for digital platforms.
Because the VAT rules apply to taxable platform operators, not to private property owners who are the taxpayer’s members.
It introduces a deemed‑supplier model, treating the platform as the supplier of services for VAT purposes.
Primary source
Read the full article at Bloomberg TaxThis summary was published on VATfaqs.com on 28 January 2026. It relates to VAT developments in Italy. The original source is Bloomberg Tax.
