Italy Launches Public Consultation on ViDA Directive Transposition

The Italian Department of Finance (MEF) has initiated a public consultation regarding a draft legislative decree designed to transpose Article 2 of Directive (EU) 2025/516. This directive forms part of the European Union’s VAT in the Digital Age (ViDA) package. The proposed decree introduces adjustments to domestic VAT legislation, slated to take effect on January 1, 2027. These updates focus on One-Stop-Shop (OSS) and Import One-Stop-Shop (IOSS) frameworks, alongside measures to support a Single VAT Registration system, reducing multi-state registration requirements for EU businesses.

Key Regulatory Adjustments

The draft decree outlines several significant changes to cross-border VAT compliance and e-commerce operations, effective from 2027:

• Expansion and clarification of the application of the OSS and IOSS, including updating registration information requirements and extending the non-Union OSS scheme to cover specific services provided within the EU to non-EU clients.
• Clarification of practical aspects of the OSS and IOSS mechanisms, including the exact timing of VAT liability under the OSS, procedures for VAT refunds, and the intersection between the IOSS and specific VAT rules for small businesses.
• Revision of the €10,000 EU-wide threshold for intra-EU distance sales of goods and certain digital services. For entities utilizing the Union OSS, the choice to apply VAT to transactions in the customer’s country will be considered automatically exercised.
• The existing call-off stock simplification mechanism, which allows certain intra-EU stock transfers without triggering immediate local VAT registration, will be progressively phased out. The current arrangements will remain valid for shipments dispatched up to June 30, 2028, with the relevant Italian statutes scheduled for final repeal on June 30, 2029.
• The rules clarify the conditions under which digital platforms and marketplaces are classified as deemed suppliers, making them responsible for VAT collection on designated intra-EU sales.
• From January 1, 2027, until June 30, 2028, the OSS framework will encompass certain cross-border supplies of electricity, gas, heating, and cooling delivered to private consumers. Transitional rules will also apply to specific energy products categorized as intra-EU distance sales.

Scope of Application

The upcoming regulatory framework will impact various market participants involved in cross-border transactions, specifically:

• E-commerce businesses companies selling goods to customers in other EU countries
• Businesses that declare and pay VAT via a single EU portal using OSS or IOSS
• Marketplaces and digital platforms facilitating transactions between sellers and consumers
• Businesses that use or are affected by IOSS, including sellers of low-value goods
• Companies moving internal stock across EU jurisdictions, especially those relying on the current call-off stock procedures
• Small businesses and flat-rate taxpayers navigating the interaction between SME VAT provisions and the IOSS

Consultation Details

The draft legislative decree has been made available on the MEF’s official website. The Italian authorities are collecting feedback, comments, and proposals through a dedicated online form. The public consultation window was open from June 22, 2026, to July 6, 2026. The feedback may be used to refine the regulation before the decree is finalized for official implementation on January 1, 2027.

There’s more you should know about e-invoicing in Italy – learn more about the new and upcoming regulations.