Third Sector · Tax & Compliance
Third Sector Entities:
tax, accounting and compliance in 2026
The Third Sector reform has entered a more mature operational phase. For Italian Third Sector Entities, 2026 requires particular attention to tax classification, accounting, reporting, RUNTS requirements and internal organisation.
The regulatory framework applicable to Third Sector Entities cannot be managed by looking at tax rules alone. The nature of the activities performed, the entity's organisational structure, its accounting system and the information filed with the RUNTS must be considered together.
For this reason, organisations operating in the Third Sector should periodically verify that their actual activities remain consistent with their bylaws, their RUNTS classification and the accounting and tax treatment applied.
2026 and the consolidation of the Third Sector framework
During 2026, several regulatory and operational developments have further defined the framework introduced by the Italian Third Sector Code.
Particular attention should be paid to the management of the RUNTS, the accounting models available to smaller entities, the control system applicable to registered organisations and the transition of entities previously operating under the ONLUS regime.
Being registered with the RUNTS is not merely a formal status: governance, activities, accounting and tax treatment must remain consistent over time.
The transition from the former ONLUS regime
From 1 January 2026, the former ONLUS register ceased to operate. This represents an important step in the completion of the Third Sector reform and requires affected organisations to carefully assess their position under the new framework.
The transition should not be treated as a simple registration exercise. The entity's bylaws, activities, governance, accounting system and tax position should be reviewed together in order to identify the most appropriate structure going forward.
RUNTS: information must remain up to date
The Italian National Single Register of the Third Sector — RUNTS — is central to the legal and administrative framework of Third Sector Entities.
Registration is only the first step. Entities must also ensure that information, financial statements and other documents subject to filing requirements are correctly prepared and deposited, and that relevant changes concerning the organisation are reflected in the register.
Accounting and financial statements
The accounting framework applicable to an ETS depends on its characteristics, size and activities. The accounting system should therefore be designed not only to produce the annual financial statements, but also to support the correct classification of the entity's activities.
In 2026, the framework for smaller ETS has also been further developed through the introduction of a simplified aggregated cash reporting model for entities meeting the statutory requirements.
Even where a simplified reporting model is available, proper accounting organisation remains essential. Simplification of the financial statement format does not eliminate the need to maintain adequate supporting documentation and administrative controls.
Tax treatment depends on the activities actually performed
One of the most important aspects of Third Sector taxation is the distinction between activities of general interest and other activities, together with the assessment of their commercial or non-commercial nature under the applicable rules.
This classification can affect the overall tax position of the organisation. It is therefore important that contracts, revenues, costs and accounting records allow the entity's activities to be identified and monitored correctly.
VAT and other taxes require a separate analysis
Qualification as a Third Sector Entity does not automatically determine the VAT treatment of every transaction carried out by the organisation.
The VAT treatment must be assessed according to the nature of each activity and transaction. The same principle applies when considering other taxes, including IRAP, for which the applicable rules may also depend on the entity's characteristics and the relevant regional legislation.
Controls on Third Sector Entities
The system of supervision and control over Third Sector Entities is becoming increasingly operational. In 2026, official models were adopted for ordinary and extraordinary controls on ETS.
This makes internal organisation particularly important. Corporate records, accounting documentation, financial statements, RUNTS filings and the actual performance of activities should provide a consistent picture of the entity.
2026 checklist
What an ETS should review
01 — RUNTS registration and information
02 — Consistency between bylaws and actual activities
03 — Commercial and non-commercial activities
04 — Accounting system and financial statements
05 — VAT and tax treatment of transactions
06 — Governance, corporate records and internal controls
An integrated approach is essential
Third Sector compliance increasingly requires coordination between legal structure, governance, accounting and taxation. Managing these areas separately can create inconsistencies that may only emerge when financial statements are prepared, a RUNTS filing is required or the entity is subject to a control.
A periodic review of the organisation therefore allows potential issues to be identified in advance and helps ensure that the entity's administrative structure evolves together with its activities.
Frequently asked questions
Is RUNTS registration sufficient to obtain the correct tax treatment?
No. Registration is fundamental, but the tax treatment also depends on the nature of the entity and the activities actually carried out.
Can all Third Sector Entities use simplified accounting?
No. The accounting and financial reporting model depends on the entity's characteristics, activities and statutory thresholds.
Does ETS status automatically make all activities non-commercial?
No. The commercial or non-commercial nature of activities must be assessed under the rules applicable to the specific entity and activity.
Why is a periodic review useful?
Because the organisation's activities, revenues and structure may change over time. A periodic review helps maintain consistency between operations, accounting, taxation, governance and RUNTS requirements.
This article provides general information and does not constitute professional advice. The tax and regulatory treatment of each Third Sector Entity should be assessed according to its specific characteristics, activities and the legislation applicable at the time.