3754641 - Italy Split Payment: Legal Validity Until 30 June 2026 and Configuration from 1 July 2026 if no Legal Extension Applies

The split payment functionality for Italy is currently available in SAP Business ByDesign and is described in the SAP Help Portal under Split Payment for VAT — Italy.

The current EU authorization is based on Council Implementing Decision (EU) 2023/1552, which extended Italy’s authorization to apply the split payment derogation until 30 June 2026.

Italian domestic law links the application of split payment to the expiry of the EU derogation. Article 17-ter, paragraph 1-ter, of DPR 633/1972 states that the provisions apply until the expiry of the special derogation granted by the Council of the European Union under Article 395 of Directive 2006/112/EC.

Therefore, the use of split payment after 30 June 2026 depends on whether a further official legal extension is in force.

If no official legal extension applies from 1 July 2026, the split payment regime should not be applied to new transactions outside the legal validity period.

This is not a system error.

SAP Business ByDesign

Until 30 June 2026, continue to use the Italy split payment functionality only for transactions and counterparties that are legally in scope.

From 1 July 2026, proceed according to the legal status of the Italian split payment regime:

• If an official legal extension is in force, continue to apply split payment according to the extended legal validity period and scope.
• If no official legal extension is in force, do not apply split payment to new Italian transactions that are no longer covered by the law.

If there is no extension of the Italian split payment regime beyond 30 June 2026, restrict the use of the relevant Italy split payment tax codes by ending their validity in the system.

To do this:

1. Go to Business Configuration.
2. Select Implementation Projects and open the relevant implementation project.
3. Go to Activity List.
4. Open the activity Tax on Goods and Services.
5. Go to Tax Codes.
6. Filter for the Italy split payment tax codes (550, 551, 552, 561, 562, 74, 75, 76)
7. For each relevant split payment tax code, set the Valid To date to 30 June 2026.
8. Save the changes.

This prevents the split payment tax codes from being used in new transactions after the legal validity period, while existing posted documents are not changed by this validity update.

In addition, check customers for which split payment is currently maintained, and review the tax exemption reason used for split payment.

Do not delete the tax codes or historical documents, as they may still be required for reporting, audit, reversals, or correction documents.

For credit memos, cancellations, or correction documents referring to invoices originally posted before 1 July 2026, confirm the correct tax treatment with your tax advisor.

 

If the Italian split payment regime is officially extended in the future, the validity of the relevant tax codes can be reopened by updating the Valid To date according to the new legal validity period.

• Country/Region: Italy
• Tax Management
• Customer Invoicing
• Supplier Invoicing
• VAT / IVA
• Split Payment / Scissione dei pagamenti

, KBA , SRD-FIN-GLO-TAX , GLO - Tax Declaration , Problem

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