On January 1, 2026, the real-time tax monitoring control platform debuted in Italy. The Revenue Agency was the principal supporter of this project. Italy is among the first EU countries to implement an AI-powered tax control system.
The primary driver of this technological reform is to strengthen the tax monitoring framework. The shift from the current VAT reporting system to a more predictive monitoring system managed by AI algorithms. The ability to cross-reference transactional and payment data from various sources, such as e-invoicing repositories, digital payments, and periodic tax returns, in real time will undoubtedly identify which taxable persons are behaving non-compliantly.
The tax control platform will assign a reliability profile to each VAT number based on specific risk indicators, such as the level of difference between reported income and issued invoices; inconsistencies with input tax credits; significant differences in cash inflows and outflows in the same period of time in other fiscal years, and many others.
To avoid unjustified allocations of fines and penalties and to prevent potentially large numbers of tax disputes between the Revenue Agency and compliant taxpayers, taxpayers will be able to view “how the algorithm works” through their personal online profile.
AI-Digital Tax Control
How does the algorithm communicate with taxable persons?
When the control platform identifies discrepancies, it issues a notification to the taxable person, including an explanatory message outlining the discrepancies and potential remedies.
Identified taxable persons will, in most cases, have 30 days to regularize their situation and avoid penalties and associated fines.
The digital tax control platform’s main focus will be on taxable persons operating in sectors such as e-commerce, construction, wholesale trading, and intra-EU supplies. Establishment of full tax compliance in Italy for domestic and non-resident taxable persons is more “important” than ever before, with the introduction of a new digital tax monitoring system. This tax control platform operates 24/7, and its integration with multiple tax repositories delivers unprecedented precision and effectiveness.
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