Business · Economy · 4 hrs ago
Some business expense reimbursements are excluded from Italy’s flat-rate tax income
Italy’s tax agency clarified how expense reimbursements are treated for self-employed people using the flat-rate tax regime.
The guidance covers travel, meal and accommodation costs that workers charge to their clients.
From 1 January 2025, these reimbursements do not count as taxable income under the regime if the expenses are itemised.
The condition is that the original expenses must be paid through traceable methods, rather than in cash.
The rule matters because it affects how these self-employed workers calculate income under the flat-rate system.
The agency’s clarification is set out in answer number 213/2026.
Italy’s Revenue Agency clarified that certain business travel reimbursements are excluded from the taxable income of flat-rate taxpayers.
The exclusion applies to itemised travel, meal and accommodation expenses charged to a client.
The rule applies from 1 January 2025.
The expenses must be paid using traceable methods, not cash.
- Who
- Flat-rate taxpayers and self-employed people in Italy.
- What
- Itemised travel, meal and accommodation reimbursements charged to a client do not count toward their income.
- When
- From 1 January 2025.
- Where
- Italy.
- Why
- The Revenue Agency’s clarification makes the exclusion conditional on payment through traceable methods rather than cash.
This story does not have two clearly opposing sides.
The exclusion for qualifying itemised travel, meal and accommodation reimbursements takes effect.
Money.it reports on the Revenue Agency’s clarification, response No. 213/2026.
- Revenue Agency response
- No. 213/2026
- Effective date
- 1 January 2025
- Covered expenses
- Travel, meals and accommodation
- Payment condition
- Traceable methods; not cash