Skip to content With Ruling No. 68/2026, the Agenzia delle Entrate addresses the flat-rate regime, revising the position expressed in Ruling No. 26/2026 and providing clarification on the treatment of fees received by mistake and subsequently repaid.
The case and interpretative issue
The case concerns a taxpayer under the flat-rate regime who, in tax year 2024, received payments which—under a purely cash-based approach—would exceed the €85,000 threshold.
However, part of these amounts was received by mistake, was not actually due, and was later returned to the payer.
The issue submitted to the tax authority is whether these amounts should be considered:
- for the purpose of calculating the €85,000 threshold;
- for determining taxable income.
Previous position
In Reply No. 26/2026, the Agency adopted a strict approach based on the cash principle, considering all amounts received during the tax year as relevant, regardless of subsequent repayment.
With Reply No. 68/2026, this position is explicitly overturned. The Agency reassesses the case, emphasizing that the amounts:
- were not legally due;
- did not result in actual enrichment;
- were repaid, eliminating their economic effect.
Effects on the threshold and taxable income
Amounts received by mistake and later repaid are fiscally irrelevant.
Specifically:
- For the €85,000 threshold: only definitively received income must be considered; undue amounts that are repaid must be excluded.
- For taxable income: repaid amounts do not contribute to taxable income, as they lack finality.
- For substitute tax: if taxes were initially paid, the taxpayer may recover them through a refund or tax credit.
Concluding remarks
The position in Reply No. 68/2026 is based on a general principle: in the flat-rate regime, only income that is effectively due and definitively acquired is fiscally relevant.
Thus, while the cash principle remains the reference criterion, it must be interpreted in line with the economic substance of transactions, avoiding distortions caused by purely financial anomalies.
This clarification introduces a more balanced approach and has practical implications:
- it prevents exit from the flat-rate regime due to repaid undue income;
- it neutralizes tax effects of non-due receipts;
- it requires proper documentation and traceability of repayments.