From the first of July: Split Payment Exclusion for FTSE MIB-Listed Companies

Article 10 of Decree-Law No. 84/2025, by repealing letter d) of Article 17-ter, paragraph 1-bis of Presidential Decree No. 633/1972, has implemented the provisions of EU Decision No. 1552/2023 and has excluded companies listed on the FTSE MIB index of the Italian Stock Exchange from the scope of the split payment mechanism. The split payment system remains unchanged for transactions carried out with other affected entities, such as Public Administrations and entities covered by Article 17-ter, paragraph 1-bis of Presidential Decree No. 633/1972.

The provision explicitly states that the exclusion applies to transactions for which the invoice is issued from July 1, 2025, regardless of the date the transaction was carried out or the VAT became due. This criterion, already adopted in previous legislative measures and subsequently confirmed by the Italian Revenue Agency’s practice, may generate operational uncertainties during the initial phase, particularly in the case of invoices issued by 30 June but rejected by the Interchange System (SdI) and subsequently re-submitted.

From an operational standpoint, suppliers of listed companies will need to adapt their invoicing procedures by applying VAT under the ordinary regime, except in cases where the reverse charge mechanism applies. Specifically, in practical terms:

The abolition of the split payment mechanism for such companies will also have financial and VAT settlement implications, as suppliers will no longer find themselves in a structurally creditor position, as often occurred under the split payment regime. In fact, active transactions with FTSE MIB companies will generate VAT debit to be offset against VAT credit, also affecting the calculation of the year-end VAT advance payment.​​

Finally, in the event of incorrect application of the split payment mechanism after July 1, the error may be rectified by issuing a credit note to cancel the original invoice and subsequently issuing the correct document. If the supplier fails to regularize the situation, the purchaser must report the irregularity to the Italian Revenue Agency within 90 days of the issuance date of the irregular invoice, by submitting an XML file with code "TD29" to the Interchange System (SdI), in order to avoid the administrative penalty provided for in Article 6, paragraph 8, of Legislative Decree No. 471/1997 (equal to 70 per cent of the VAT, with a minimum of Euro 250).