Italy will implement a new tax policy in 2025 that requires credit card payments for deductible expenses in an effort to combat tax evasion. This initiative is part of a broader strategy to increase transparency and accountability in financial transactions.

Background

The new regulations will extend the existing requirement for traceable payments to nearly all categories of tax deductions. The government aims to combat VAT evasion and improve income monitoring by increasing payment traceability.

Key Features

• Traceable payments for business representation expenses
• Integration of electronic payment devices with cash registers
• Transition to digital delivery notes for the transportation of goods
• Promotion of the use of electronic receipts

VAT Evasion in Italy

VAT evasion has been a significant issue in Italy, with approximately 25% of VAT evasion in the European Union originating from the country. Although Italy has made progress in reducing revenue losses from tax evasion, it still ranks among the highest in Europe.

Government's Commitment

The government's commitment to enhanced payment traceability reflects the need for tax system reform and a more equitable tax environment. The focus will be on monitoring the impact of these changes on tax compliance and overall revenue generation.