07.18.23

Authorization for split payment mechanism

Our recent post commented on Italy’s pursuit for the continuation of the split payment mechanism. The post explains why the split payment mechanism is regarded as an effective measure to counter VAT fraud.  

The European Commission has now authorized Italy to continue with the use of the split payment mechanism until 30 June 2026. Notably, companies listed on the FTSE MIB Index will be excluded from the split payment mechanism from 1 July 2025. 

The split payment mechanism is strongly associated with Pologne, who similarly received authorization to continue with the feature in April 2022. Our e-invoicing solution in Poland today accommodates the split payment mechanism, if relevant to our customers.