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Can a VPN read my traffic to know what I'm doing?

https://torrentfreak.com/italy-approves-piracy-shield-vpn-dns-proposal-risk-of-prison-for-isps-intact-241001/

As title. Italy is decided to pass a law that basically creates a chinese-type firewall in the country. The question is simple: even if I'm not doing anything illegal, my VPN provider will have to know what am I doing to report it in case it's illegal, or face jail.

So how could my traffic remain private in this scenario?

Can a VPN provider with no logs policy be held accountable of anything? Can it actually know what I'm doing?

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