- The VAT reform for non-profit organizations in Italy has been postponed to 2026
- The postponement was officially announced through the publication of the “Milleproroghe” decree law DL 202/2024 in the Official Gazette on December 27
- The reform affects non-profit associations currently under the VAT non-commercial regime as per articles of DPR 633/72, which includes various types of associations like political, trade, religious, welfare, cultural, amateur sports, social promotion, and extracurricular training
- These entities, if not primarily engaged in commercial activities, do not apply VAT on goods and services provided to members and affiliates in line with their institutional purposes
- The current regime exempts these transactions from VAT and related formal obligations such as invoicing and declarations, despite being conducted in exchange for specific payments or additional contributions beyond membership fees
- However, this regime is incompatible with the EU VAT Directive 2006/112/EC, leading to an infringement procedure against Italy
- The reform under DL 146/2021 aims to modify the VAT decree by removing the VAT exclusion for associative entities and potentially exempting many of the same transactions
- The change will require many entities to obtain a VAT number, even if they only perform transactions for members or affiliates
- Entities already holding a VAT number will face significant impacts due to the shift from an exclusion to an exemption regime, increasing compliance burdens
- The additional year delay provided by DL 202/2024 allows affected associations more time to assess the impact of these changes and make necessary adjustments
Source: eutekne.info
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
