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Reverse charge in freight transport and logistics even without prevalent use of manpower

published on 4 July 2025 | reading time approx. 3 minutes

With Article 1, paragraph 57, of Law n. 207/2024 (2025 Budget Law), recently amended by Decree-Law n. 84 of June 17, 2025 (the so-called “DL Fiscale” or “Tax Decree”), recent legislation has introduced a significant extension of the scope of the VAT reverse charge mechanism for services provided in the logistics and freight transport sector. In particular, with the Fiscal Legislative Decree, the reference to contractual characteristics was removed, which, until now, had limited the application of the regime to cases involving the predominant use of manpower at the premises of the client and the use of equipment attributable to the client.

The new wording of art. 17, paragraph 6, letter a-quinquies) of DPR n. 633/1972 now extends the reverse charge mechanism to all services rendered under service contracts, subcontracts, assignments to consortium members, or other similar contractual arrangements, provided to companies operating in the transport, freight handling, and logistics sectors, regardless of the contractual structure. This legislative measure aims to more effectively combat VAT fraud in the sector, while also simplifying the identification of cases in which the reverse charge mechanism applies.

However, the full effectiveness of the new provisions is subject to the authorization of the Council of the European Union, pursuant to art. 395 of Directive 2006/112/CE. Pending such authorization, an optional transitional regime has therefore been introduced by paragraphs 59 and following of art. 1 of Law n. 207/2024.

This regime allows the client, on an optional basis, to directly remit the VAT due on behalf of the service provider using the F24 payment form, by the 16th day of the month following the month in which the invoice is issued, without the possibility of offsetting against other tax or social contribution credits. In any case, the service provider remains jointly liable for the VAT due.

However, the practical application of the transitional regime is subject to the issuance of an implementing provision by the Director of the Revenue Agency, who will define the deadlines, operational procedures, and documentation requirements. The option provided by the transitional regime will be valid for three years and must be communicated by the client to the Revenue Agency. The option is considered validly exercised from the date on which the communication is submitted to the Revenue Agency. As of today, this implementing provision has not yet been issued, effectively rendering the optional regime currently inapplicable despite its statutory provision.

The tax legislative decree of June 17 2025 clarified that the option for the transitional regime can be independently applied by each party involved in the subcontracting chain.

The optional regime effectively represents a bridging solution that partially anticipates the effects of the reverse charge while awaiting the full implementation of the mechanism.

In summary, following the revision of the regulations carried out with the Tax Decree, the domestic reverse charge under discussion is applicable to the provision of services:

different from those referred to in letters a) to a-quater) of Article 17, paragraph 6 of DPR n. 633/1972;
carried out through service contracts, subcontracting, assignment to consortium members, or other contractual arrangements, however named;
provided to companies engaged in freight transport, goods handling, and logistics services.

The provision under examination does not apply to transactions carried out with public administrations and other entities and companies subject to the so-called split payment mechanism referred to in art. 17-ter of DPR n. 633/1972, nor to employment agencies as defined in article 4 of Legislative Decree n. 276 of September 10, 2003.

Client companies operating in the logistics and freight transport sector will therefore need to carefully assess their existing contracts and administrative processes, continuously and diligently monitoring regulatory developments, particularly the potential issuance of EU authorization and the enactment of the provision for the transitional regime.