Opting for Italian cash-accounting VAT (article 32-bis)
Under Italy's cash-accounting VAT regime (Iva per cassa, article 32-bis of Decree-Law 83/2012) a business or professional pays the VAT on its invoices only when it collects them, and deducts VAT on purchases only when it pays for them; the VAT nevertheless becomes due one year after the transaction. It is open to taxpayers whose turnover does not exceed two million euros. The choice is shown by conduct and notified in section VO of the VAT return for the first year of application; it binds for at least three years.
Up to date for 2026 — verified on September 24, 2026Official procedure, no printed formGuide: about 20 min
Deadlines
- From the first day you apply it
- The option is exercised by conduct: you invoice and settle VAT on a cash basis
- VAT return for the first year of application
- Notification of the option in section VO
- One year after the transaction
- VAT becomes due anyway, even if the invoice is unpaid, unless the customer has meanwhile entered insolvency proceedings
- Month or quarter after turnover exceeds two million euros
- Exit from the regime
Documents to prepare
- The previous year's turnover, or the expected one if you are starting
- The list of customers, to tell businesses and professionals apart from private consumers
- An invoice template carrying the « Iva per cassa » statement under article 32-bis of Decree-Law 83/2012
- A schedule of collections and payments, to settle VAT at the right time
No form is attached to this procedure: the link leads to the official page that describes it.
What this page gives you
The guide above and the link to the official site. ActioFin does not produce any document for this page: whatever you fill in or file is done on the official medium.
Who this applies to
- Anyone carrying on a business, art or profession whose turnover in the previous year did not exceed two million euros (or who expects not to exceed it, when starting)
- For taxable supplies of goods and services in Italy to customers who themselves act in the course of a business, art or profession
- Non-commercial bodies too, for any commercial activity they carry on
- Excluded: transactions under special regimes, to private consumers, under reverse charge, with VAT deferred by law (the State, local health authorities, hospitals, pharmacists), intra-EU supplies, exports and similar transactions
Worked example
Francesca Villa, an IT consultant in Milan, chooses cash-accounting VAT
In 2025 Francesca had a turnover of 400,000 euros, working only for Italian businesses: she may choose cash-accounting VAT and applies it from 1 January 2026, stating it on her invoices. On 10 March 2026 she invoices 10,000 euros plus 2,200 euros of VAT to a customer who pays on 15 July 2026. Francesca settles VAT monthly, and the 2,200 euros go into July's settlement, not March's. Had the customer still not paid, the VAT would have become due anyway on 10 March 2027. Francesca notifies the option in section VO of the VAT return for 2026 and stays in the regime at least for 2026, 2027 and 2028.
How to fill it in, step by step
- Check the previous year's turnover (or the expected one, if you are starting): it must not exceed two million euros.
- Check that your customers act in the course of a business, art or profession: supplies to private consumers, reverse-charge, legally deferred, intra-EU or export transactions stay outside the regime.
- Start applying the regime: state on every invoice issued that it is a transaction with « Iva per cassa » under article 32-bis of Decree-Law no. 83 of 22 June 2012.
- In your periodic settlements, include the VAT on sales when you collect it and the VAT on purchases when you pay your suppliers, or after one year from the transaction.
- Notify the option in section VO of the VAT return for the first year of application.
- Keep an eye on turnover: above two million euros you leave the regime from the following month or quarter.
Good to know
- The regime changes only when VAT becomes due or deductible: invoicing, recording and the other bookkeeping obligations stay as usual.
- Deduction is on a cash basis too: VAT on purchases is deducted when you pay the supplier, or after one year from the transaction.
- Your customer, unless it has also chosen cash accounting, deducts the VAT under the ordinary rules, regardless of payment.
- After the minimum three years the option stays valid year by year until revoked in the first VAT return filed after that choice; the year the activity starts counts in full towards the three years.
- A taxpayer with both special-regime and ordinary transactions may apply cash accounting to the latter by opting for separate accounts (article 36 of Presidential Decree 633/1972).
- On the purchase side, reverse-charge purchases, intra-EU acquisitions, imports and withdrawals from VAT warehouses are also excluded.
Common mistakes
- Leaving out of the invoice the « Iva per cassa » statement with the reference to article 32-bis of Decree-Law 83/2012.
- Deducting VAT on purchases when the invoice is received instead of when the supplier is paid.
- Applying cash accounting to invoices to private consumers, which are excluded.
- Waiting more than a year for payment: VAT becomes due one year after the transaction anyway.
- Revoking the option before the minimum three years are over.
Frequently asked questions
Who can choose cash-accounting VAT?
Businesses and professionals whose previous-year turnover did not exceed two million euros, for taxable transactions in Italy with customers acting in the course of a business, art or profession.
How is the option exercised?
By conduct, that is by applying the regime; it is then notified in section VO of the VAT return for the first year of application.
How long does it bind?
At least three years, unless turnover exceeds two million euros, which ends the regime from the following month or quarter. After three years it stays valid year by year until revoked.
What if the customer never pays?
VAT becomes due anyway one year after the transaction, unless the customer has entered insolvency proceedings before then.
Go further
Compute the related amounts
Understand this form: the related course
Official sources
- Agenzia delle Entrate — Cash-accounting VAT option: what it is (updated 6 March 2025) — September 24, 2026
- Agenzia delle Entrate — Cash-accounting VAT option: how the option is exercised — September 24, 2026
- Agenzia delle Entrate — Cash-accounting VAT option: excluded transactions — September 24, 2026
Guide and document provided for information purposes only; they do not constitute personalised legal or tax advice. Check the recipient organisation's requirements and consult a professional if needed.