Stay updated on the latest regulations concerning electronic payment systems and cash register integration in Italy.
Topics covered
Italy has introduced new regulations effective January 1, 2026, significantly altering how businesses process and record electronic payments. This update, stemming from provisions in the 2026 Budget Law, aims to enhance tax compliance and curb tax evasion, as detailed in a decree from the Revenue Agency.
Merchants are now required to register their electronic payment devices with their cash registers. This development is intended to streamline processes and ensure accurate financial reporting.
Understanding the registration process
The Revenue Agency has launched an online service called “Manage Connections” to assist merchants in connecting their electronic payment systems to their cash registers.
This system facilitates daily sales data reporting to the tax authority, improving transparency and accountability.
Who is affected by the new regulations?
All businesses issuing fiscal receipts and accepting electronic payments through credit and debit cards are subject to these new rules.
This encompasses a diverse array of establishments, including retail shops, restaurants, pharmacies, and service providers. The legislation also applies to artisans with both a workshop and a sales point, as well as street vendors.
Why these changes are necessary
The main goal of these regulatory changes is to combat tax evasion, often stemming from the failure to issue receipts or accurately record electronic transactions. By mandating a connection between cash registers and payment devices, the government seeks to close loopholes that enable some businesses to underreport earnings.
Since the advent of electronic payments, their usage has surged, particularly after the removal of minimum spending limits and the requirement for merchants to accept these payments. However, without proper integration between cash registers and payment systems, discrepancies and inaccuracies in reported income can occur.
Registration requirements and penalties
Merchants must ensure their cash registers are compatible with electronic payment systems before registering them online. Notably, this regulation does not require software updates or replacements for existing devices. Registration can be conducted by the business owner or delegated to a representative.
Non-compliance with these regulations can result in significant penalties. Each violation regarding electronic payment transmissions may incur a fine of up to €100, with a maximum penalty of €1,000 per quarter. Additionally, failing to link the cash register to the payment device could lead to administrative fines ranging from €1,000 to €4,000.
Gradual implementation of the new rules
To facilitate a smooth transition, the government has established a grace period until January 31, 2026, allowing businesses to set up the necessary connections without immediate penalties. This period includes entering into contracts with their payment service providers. The final deadline for completing registrations will vary based on the activation date of the electronic payment devices.
For instance, if a new payment device is activated on February 1, the merchant must complete the registration by April 30. This phased approach aims to assist businesses in adapting without undue pressure.
Merchants are now required to register their electronic payment devices with their cash registers. This development is intended to streamline processes and ensure accurate financial reporting.0
