Missing 2026 VAT Decree Throws Retailers Into Uncertainty Over New Electronic Register Rules

Breaking: Italy’s VAT overhaul stalls as final decree remains unpublished

As 2025 ends, Italy’s VAT settlement framework for retailers sits in limbo. A reform aimed at scrapping the ventilation of fees mechanism – a cornerstone of the current VAT settlement system – has not yet been codified into law due to the delayed publication of the final decree.

The change at stake

The ventilation of fees is a legacy method that simplified tax reporting for certain product categories by allowing daily charges to be recorded in aggregate. It originated under art. 24, c. 3 of Presidential Decree 633/1972 and was further regulated by Ministerial Decree 02.24.1973. The proposed abolition would replace this approach with a new VAT settlement regime beginning in 2026.

Where things stand

The plan was outlined in a draft decree that the Council of Ministers preliminarily approved on July 22, 2025. Officials had intended the changes to take effect from January 1,2026. Though,the lack of official publication in the Official Journal has created a technical and administrative stalemate,leaving taxpayers unsure how to adjust their electronic registers in time.

Impact on retailers

Retailers face potential operational disruptions as the transition hinges on a clear regulatory text and timely publication. Without a definitive decree, businesses cannot finalize the procedures and systems needed for the new VAT settlement framework.

Key facts at a glance

Aspect	Current Status	Implications
Change	Abolition of the ventilation of fees	New VAT settlement mechanics planned
Draft approval	Council of Ministers approved on July 22, 2025	Need final publication
effective date	Targeted for 2026-01-01	Dependent on official publication
Current obstacle	Delay in Official Journal publication	Leaves operators in limbo

outlook and what to watch

Analysts emphasize the importance of a timely publication for clarity on electronic registers and VAT settlement. Once the decree appears, businesses will need to adjust systems and training to align with the new regime.

Readers, your take: How would a delayed decree affect your planning for 2026? What steps would you take to prepare for a revised VAT system?

What are the main risks for small businesses if the 2026 VAT Decree remains unpublished?

Missing 2026 VAT Decree Throws Retailers Into uncertainty Over New Electronic Register Rules

The looming implementation of new electronic register rules tied to the 2026 Value Added Tax (VAT) decree is causing significant anxiety amongst retailers across the nation. The absence of the finalized decree, originally slated for release months ago, has left businesses scrambling to prepare for potentially considerable changes to their point-of-sale (POS) systems and compliance procedures. This article breaks down the current situation, potential impacts, and steps retailers can take to mitigate risk.

What’s Causing the Uncertainty? – The Delayed VAT decree

The 2026 VAT decree aims to modernize tax collection by mandating the use of certified electronic registers for almost all retail transactions.The intention is to reduce tax evasion and improve the accuracy of VAT reporting. However, the delay in publishing the official decree has created a vacuum of information. Key details remain unclear, including:

* Specific Technical Requirements: What certifications will be required for electronic registers? What data formats will be mandated?

* Implementation Timeline: While the general target is 2026, a precise rollout schedule is missing. Will there be phased implementation based on business size or sector?

* Financial Incentives/Support: Will the government offer subsidies or tax breaks to help retailers cover the costs of upgrading their systems?

* Data Security Protocols: What measures must retailers take to protect sensitive transaction data and comply with data privacy regulations?

This lack of clarity makes it unfeasible for retailers to confidently invest in compliant solutions. Many are hesitant to commit to expensive upgrades without knowing the exact specifications.

Impact on Retailers: A Sector-by-Sector Breakdown

The impact of the new electronic register rules will vary depending on the type of retail business.

* Small & Medium-Sized Enterprises (SMEs): SMEs, often operating with limited budgets, are notably vulnerable. The cost of new hardware, software, and staff training could be substantial. Many may struggle to afford the necessary upgrades,potentially leading to business closures. VAT compliance for small businesses is a major concern.

* Large Retail Chains: While larger retailers have more resources, they face the challenge of upgrading numerous POS systems across multiple locations. Integration with existing enterprise resource planning (ERP) systems will also be complex and time-consuming. Retail technology upgrades are a significant undertaking.

* E-commerce Businesses: The decree’s implications for online retailers are also unclear. Will they be required to integrate electronic registers with their online payment gateways? How will cross-border transactions be handled? Online VAT compliance is a growing area of scrutiny.

* Hospitality Sector (Restaurants,Hotels): The hospitality sector relies heavily on POS systems for order taking and billing. Adapting these systems to meet the new electronic register requirements will be crucial. POS system upgrades are essential for this sector.

Key Requirements Expected in the 2026 Decree (Based on Draft Proposals)

Although the final decree is missing, draft proposals suggest the following requirements are likely to be included:

1. Real-Time Data Transmission: Electronic registers will likely need to transmit transaction data to the tax authorities in real-time or near real-time.
2. Secure Data Storage: Transaction data must be stored securely for a specified period (potentially 5-10 years) to facilitate audits.
3. Unique Transaction Identifiers: Each transaction will need to be assigned a unique identifier to prevent fraud and ensure traceability.
4. Digital Signatures: The use of digital signatures may be required to authenticate transactions and prevent tampering.
5. Integration with tax Authority Systems: Electronic registers must be able to seamlessly integrate with the tax authority’s systems for data exchange.

Mitigating the Risk: Actionable Steps for Retailers

Despite the uncertainty, retailers can take proactive steps to prepare for the new electronic register rules:

* Stay informed: Regularly monitor official government announcements and industry publications for updates on the decree. Subscribe to relevant newsletters and attend industry webinars.

* Assess Current Systems: Evaluate your existing POS systems and identify any gaps in functionality. Determine what upgrades or replacements will be necessary.

* Budget for Upgrades: Allocate sufficient funds in your budget for the cost of new hardware, software, and staff training.

* consult with Experts: Seek advice from tax advisors and IT consultants specializing in VAT compliance and POS systems. VAT consulting services are highly recommended.

* explore Certified Solutions: Research and evaluate electronic register solutions that are certified by the relevant authorities.

* Data Security planning: Develop a complete data security plan to protect sensitive transaction data and comply with data privacy regulations.

Real-World Example: Poland’s Electronic Register Implementation

Poland implemented a similar electronic register system in 2017. The rollout was initially met with resistance from retailers due to the high costs and technical challenges. Though, the system ultimately led to a significant increase in VAT revenue and a reduction in tax evasion. This experience provides valuable lessons for other countries considering similar measures. The Polish experience highlights the importance of clear communication,adequate financial support,and a phased implementation approach.

Benefits of the New System (Long-Term)

While the short-term disruption is undeniable, the new electronic register system is expected to offer several long-term benefits:

* Reduced tax Evasion: Real-time