- The Italian government has postponed the implementation of VAT on non-profit organizations until 2026.
- The current exemption regime will remain in place for another year.
- The postponement was confirmed by Law 15/2025, which converted Decree Law 202/2024.
- The law modifies Article 1, paragraph 683 of Law 234/2021, postponing the effectiveness of the provisions contained in Article 5, paragraph 15-quater of Decree Law 146/2021.
- The provisions in Article 5, paragraph 15-quater of Decree Law 146/2021 would have abolished the exemption regime.
- The exemption regime applies to associations identified in Article 4, paragraph 4 of Presidential Decree 633/72, including cultural, social promotion, and amateur sports associations.
- The exemption regime also applies to non-profit sports associations (SSD) under the provisions of Article 3 of Decree Law 113/2024.
- The exemption regime applies to certain sales of goods and services for which the entities receive specific fees or supplementary contributions.
- The services must be performed in accordance with the institutional purposes of the association and for the benefit of members, associates, participants, or other affiliated associations.
- Starting January 1, 2026, these operations will be subject to VAT, although generally exempt.
- The exemption will apply to operations that are not considered commercial, such as those performed outside of a reciprocal relationship.
- Non-profit organizations can choose to be exempt from VAT obligations for exempt operations under Article 36-bis of Presidential Decree 633/72.
- This option prevents the deduction of VAT on purchases.
- Amateur sports associations will be subject to a separate exemption regime.
- Article 10, paragraph 4, number 2 of Presidential Decree 633/72 exempts services strictly related to the practice of sports or physical education provided by amateur sports associations (ASD).
- The exemption applies to services provided to individuals who practice these activities or to other associations and their members, associates, participants, or members of national organizations.
Source: sede.agenciatributaria.gob.es
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.
