Flat-rate taxpayers in Italy can now exclude analytical expense reimbursements for travel, meals, and lodging from their taxable income.
On November 12, 2026, the Italian Revenue Agency issued response no. 213 to resolve a long-standing tax disparity affecting self-employed professionals, ItaliaOggi reported.
Under previous interpretations of law no. 190/2014, and consolidated in articles 232 and following of the new unified text under legislative decree no. 117/2026, authorities treated any sum collected by flat-rate workers as compensation, including simple expense reimbursements for trips carried out on behalf of the client.
An architect or journalist advancing 1,000 euros in train tickets and hotel bills for an out-of-town assignment saw those costs counted directly as turnover. Professionals paid substitute taxes on that revenue and risked breaching annual income thresholds, ItaliaOggi reported.
The revised framework stems from legislative decree no. 192/2024, which implemented fiscal delegation law no. 111/2023 by amending article 54, paragraph 2, of presidential decree no. 917/1986 (Tuir), now transposed into article 56 of the new unified text. The resulting provision established that sums received as expense reimbursements for carrying out a specific commission do not form part of self-employment income when re-billed analytically to the client, ItaliaOggi reported.
Despite that statutory update, tax experts questioned whether the principle applied to workers using the flat-rate scheme. The Revenue Agency confirmed that analytical reimbursements for travel, food, and lodging received from January 1, 2025, onward do not form part of total compensation, The Law for All reported.
Tax neutrality applies only if professionals strictly document their expenses and use traceable payment methods. Legislative decree no. 84/2025 introduced paragraph 2-bis to article 54 of the income tax text, requiring electronic settlements for travel and accommodation costs incurred within Italy, ItaliaOggi reported.
Subsequent clarifications from the Revenue Agency, including circular no. 15/E of December 22, 2025, examined the updates concerning the traceability of travel expenses, impacting the tax treatment of reimbursements for workers, the determination of self-employment income, and the deductibility of costs for businesses.
Reimbursements for meals, lodging, travel, and taxi or private car rental services remain fully taxable if paid in cash. Workers must settle bills using credit cards, debit cards, bank transfers, or digital applications according to the list under article 23 of legislative decree no.
241/1997 to maintain the tax exclusion, and re-billing to the client must occur down to the exact cent via an analytical expense note accompanied by the relevant purchase receipts, The Law for All noted.
The tax exemption removes the risk of professionals losing their favorable tax status due to client travel costs. The regime is reserved for individuals who do not exceed 85,000 euros in annual compensation, and those who exceed 100,000 euros exit immediately within the same year. The revenue does not factor into the calculation of the 85,000-euro annual ceiling for remaining in the flat-rate regime, The Law for All reported.
The amounts also avoid triggering the 100,000-euro threshold that causes immediate exclusion from the flat-rate regime during the current tax year. Tax officials apply no profitability coefficient to properly documented and traceable expense repayments, The Law for All noted.
Under this updated framework, a flat-rate photographer who collects 80,000 euros in compensation in 2024 and receives 9,000 euros in reimbursements from clients for flights, hotels, and meals for assignment travel remains within the threshold and pays nothing on the 9,000-euro travel amount.
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