Split Payment: listed companies excluded for invoices issued from 1 July 2025

Split Payment

The split payment mechanism (italian: scissione dei pagamenti) is a special method of VAT application governed by art. 17-ter of presidential Decree No. 633/1972 (Italian VAT Law). It was introduced by Law n. 190/2014 (art. 1, par. 629, letter b)).

Under this system, the VAT shown on the invoice issued by a supplier of goods or services is not paid directly to the supplier, but rather is paid directly to the Treasury by the purchaser (the recipient of the invoice), provided the purchaser belongs to one of the following legal categories:

• Public Administrations (as defined in art. 1, para. 2 of Law No. 196/2009);
• National, regional, and local public economic entities, including special companies and public social service companies;
• Foundations in which public administrations hold at least 70% of the endowment fund;
• Companies directly controlled, under art. 2359, par. 1, no. 2 of the Civil Code, by the Presidency of the Council of Ministers or Ministries;
• Companies directly or indirectly controlled, under art. 2359, para. 1, no. 1 of the Civil Code, by public administrations or the aforementioned entities and companies;