Italy – Extended Producer Responsibility (EPR) for E-Commerce Suppliers

The Italian Government is taking strong steps towards introducing the Extended Producer Responsibility (EPR) system for producers and distributors in the textile industry. The rapid and global growth of the “fast and cheap fashion” phenomenon notoriously impacted the quantity of textile waste. 

Germany and France, among other countries, have introduced the concept of Extended Producer Responsibility for different sectors; now the Italian Government is trying to do the same. To expand the scope of the EPR to one of the most profitable industrial sectors, the fashion industry. 

The idea is to adopt the EPR regime on a broad scale, encompassing both producers and distributors. To demonstrate its commitment to the previously announced Government’s agenda, the Ministry of Environment and Energy Security published a draft Ministerial Decree on April 3, 2025, open for public consultation. 

All interested parties, including other e-commerce marketplaces and e-commerce merchants, can submit a report or opinion on this matter until May 5, 2025. The draft” Ministerial Decree for the Establishment of the Extended Producer Responsibility for the supply chain of textile products of clothing, footwear and accessories, leather goods and home textiles” shows unequivocally that the EPR regime for online merchants and e-marketplace operators could soon become a reality. 

Impact on the Textile Supply Chain

The draft Ministerial Decree should apply to all subjects in the textile supply chain that place finished products of clothing, footwear, hospitality, and household goods on the Italian market for the first time. 

Concerning the concept of the producer, the Decree’s scope covers the following variety of natural or legal persons: 

• Economic operator who is established in Italy that directly or through third parties produces or places on the Italian market a product by affixing his own name or company name or registered trademark, or imports and places on the market for the first time a product manufactured by a business not established in the country; or 
• Not-established e-commerce business that places products on the national market, leveraging different types of distance sales to end customers.

It is essential to note that both manufacturers and suppliers of textile products that make distant sales to end customers on the Italian market are within the scope of the draft Decree. 

Producers that are within the scope of the draft Decree are obliged to comply with the rules and regulations pronounced, through the development of the so-called “management waste systems”. Producers are obliged to make a pre-defined “management waste levy” through these specially designated systems or directly. 

Management, waste system operators, and producers are required to register with the appropriate National Register of Producers. This registration is the first step producers must take to put textile goods on the market in a compliant manner. 

What’s behind Italy’s EPR measures? 

The key aims of the Ministerial draft Decree can be summarized as follows:

• Enhancing the VAT reporting by e-commerce suppliers and reducing the VAT gap 
• Raise awareness of efficient waste management 
• Alignment with the EU circular economy framework 

How to Stay Compliant 

E-commerce marketplace operators and online retailers should be aware of the potential changes that the draft Decree aims to mandate. The producers and distributors involved in the Italian textile supply chain should become familiar with the new requirements. 

At 1stopVAT, we are actively monitoring EPR developments across Europe, with a particular focus on the responsibilities of e-commerce merchants. If you have any questions regarding the EPR registration process or your VAT compliance responsibilities for your business operations in Italy, please don’t hesitate to contact us. Our tax team would be happy to assist you.

The Ministry of Environment and Energy Security has published a draft Decree that mandates the introduction of Extended Producer Responsibility (EPR) for a broad range of manufacturers and distributors that form part of the textile supply chain. One of the key points of this decree is to place additional pressure on e-commerce merchants and marketplace operators to accurately report their taxes and contribute more to the establishment of safe and efficient waste management systems.