Split Payment from July 1, 2025: Exclusion for FTSE MIB Companies

Starting from July 1, 2025, the split payment mechanism will see an important change: companies listed on the FTSE MIB index of the Italian Stock Exchange will no longer be subject to this regime.

What split payment means and why it is changing? A 360-degree analysis

Italy has decided to gradually exclude certain categories of entities from the split payment regime. In line with this goal, and to honor the commitment made to the European Union, companies listed on the FTSE MIB will no longer be subject to this mechanism starting from July 1, 2025. This decision was formalized with the EU execution decision no. 2023/1552 of the EU Council.

Expected Implications and Benefits:

• Simplification for Listed Companies: Reduction of administrative and compliance burdens, with a return to the ordinary VAT management regime.
• Greater Liquidity for Suppliers: Immediate collection of VAT, without having to wait for payment times from listed companies (although the split payment mechanism already guaranteed payment certainty).
• Signal of Trust: The decision to exclude FTSE MIB companies from split payment can be interpreted as a signal of greater reliability and fiscal correctness on the part of these companies.

Who is affected by this change? Identifying the parties involved

The update mainly concerns two categories of entities:

• Companies listed on the FTSE MIB index of the Italian Stock Exchange: These companies, previously subject to split payment, will return to the ordinary VAT payment regime for invoices issued from July 1, 2025. It is essential that these companies adequately prepare to manage VAT again according to ordinary methods, reviewing their internal processes and training personnel. You can consult the official list of listed companies on the Italian Stock Exchange website.
• Suppliers of FTSE MIB listed companies: These suppliers must adjust their billing systems to no longer apply split payment to invoices issued from July 1, 2025, to listed companies. This requires a careful analysis of their client portfolio and a timely modification of the settings in their billing software.

What concretely changes from July 1, 2025? Operational aspects not to be underestimated

• Invoices issued starting from July 1, 2025: Invoices issued from this date to FTSE MIB listed companies must be issued using ordinary methods, i.e., with VAT charged to the client and paid by the supplier. It will no longer be necessary to include the “split payment” notation or make separate VAT payments.
• Identification of the invoice issuance date: It is fundamental to correctly identify the invoice issuance date, which coincides with the date the transaction is carried out. This aspect is crucial for determining whether or not to apply split payment. For example, if a supply of goods is delivered on June 28, 2025, the invoice must be issued with split payment, even if issued within the following 12 days. Conversely, if delivery takes place on July 1, 2025, the invoice must be issued using ordinary methods.
• Management of incorrect invoices: If a listed company receives an invoice issued after June 30, 2025, with a subsequent date that still references the split payment regime, it must request the supplier to cancel it and re-issue the correct invoice. It is therefore important to establish clear and timely communication with suppliers to avoid misunderstandings and delays.

How to prepare for this change? A roadmap for companies

To best navigate this transition, AQ Group advises economic operators to:

1. Verify if any of your clients are companies listed on the FTSE MIB: Consult the official list of listed companies on the Italian Stock Exchange website. This step is essential to identify clients affected by the change and plan the necessary actions.
2. Adjust your IT systems: Modify the settings of billing software to deactivate split payment for FTSE MIB listed companies starting from July 1, 2025. Ensure your systems are updated and correctly configured to avoid billing errors.
3. Train personnel: Inform administrative and accounting staff about new billing methods and the management of incorrect invoices. Training is essential to ensure everyone is aware of the changes and knows how to act correctly.
4. Communicate with suppliers: Promptly notify suppliers of this change. Clear and transparent communication is key to avoiding problems and ensuring a smooth transition.

AQ Group: your partner for a smooth transition

AQ Group is by the side of companies to best face this regulatory change, offering complete and personalized support:

• Personalized consultancy: We analyze your specific situation and provide operational guidance to adjust your billing and VAT management processes, taking into account the peculiarities of your sector and your specific needs.
• Training: We organize targeted training courses for your administrative and accounting staff, illustrating regulatory updates, correct billing methods, and management of common issues.
• Technical support: We assist you in adjusting your IT systems, ensuring a smooth transition and minimizing the risk of errors.

Don’t face this change alone! Contact us now for a personalized consultancy and discover how we can help you best manage the updates on split payment and transform this challenge into an opportunity to improve your company’s efficiency!

Did you know that…?

1. As of July 1, 2025, companies listed on the FTSE MIB index of the Italian Stock Exchange will no longer be subject to the split payment mechanism.
2. This decision was formalized with the EU execution decision no. 2023/1552 of the EU Council.
3. The split payment mechanism continues to apply, without interruption, until June 30, 2026, for other entities affected by the measure, such as Public Administrations.
4. It is critical to correctly identify the invoice issuance date to determine whether to apply split payment, paying attention to transactions overlapping July 1, 2025.

FAQ on split payment from July 1, 2025

• Who is excluded from split payment from July 1, 2025? 
  Companies listed on the FTSE MIB index of the Italian Stock Exchange.
• What should suppliers of listed companies do? 
  Adjust their billing systems to no longer apply split payment to invoices issued from July 1, 2025, to listed companies, paying attention to the invoice issuance date.
• How are incorrect invoices handled? 
  Listed companies that receive incorrect invoices after June 30, 2025, must request their cancellation and re-issuance, promptly contacting the supplier.
• What is the date to consider for applying split payment? 
  The date to consider is the invoice issuance date, which coincides with the transaction date.
• Does split payment continue to apply to other entities? 
  Yes, split payment continues to apply, without interruption, until June 30, 2026, to other entities affected by the measure, such as Public Administrations.

Sources

• Namirial: https://focus.namirial.it/split-payment-novita-2025/
• Fiscal Reform Observatory: https://osservatorio-riformafiscale.it/2025/06/15/societa-quotate-alt-allo-split-payment-dal-1-luglio-2025/
• Finanze.gov.it: https://www.finanze.gov.it/it/archivi/notizie/dettaglio-notizie/Pubblicata-la-decisione-di-proroga-dello-Split-Payment/
• Fiscoetasse.com: https://www.fiscoetasse.com/rassegna-stampa/28820-split-payment-ufficiale-la-proroga-al-2026.html
• Roedl.it: https://www.roedl.it/it-it/it/temi/Pages/Tax-Newsletter/06-25/1-luglio-esclusione-split-payment-societa-quotate-ftse-mib.aspx
• Seac.it: https://all-in-fisco.seac.it/document/347/2883015/0
• Eutekne.info: https://www.eutekne.info/Sezioni/Art_1058936_societa_quotate_senza_split_payment_a_partire_dal_1_luglio.aspx