Mandatory E-Invoicing Changes Coming to Italy

Italy: Mandatory E-invoicing through “Sistema di Interscambio” (SDI) w.e.f. January 1, 2019
 
Italy has made e-invoicing mandatory for all “business-to-business” (B2B) and “business to consumer” (B2C) transactions irrespective of the size, industry and transaction value from 1 January 2019. All businesses must transmit the e-invoice through the Government platform “Sistema di Interscambia” to the Tax Authorities.
 
Businesses in Italy should ensure that they are prepared for this change. However, for the moment, cross-border transactions are excluded.
  • The e-invoicing system requires issuance of invoices in ‘Fattura PA’ XML format.
  • Once the seller submits the e-invoices, the SDI will validate the invoices.  If approved by SDI then the invoices will be made available to the customers by certified emails.
  • Non-issuance of an e-invoice will lead to a penalty and rejection of any input tax claims.
  • Any invoice without VAT must have the correct tax code assigned to it.
 
Points of concern
 
  • Both sales and purchases will be affected so the entire finance process should be reviewed.
  • All data held should be reviewed as the data required for each customer may not be available in the current ERP system. For example, each customer must have a code (indicePA).
  • In case the accounting / invoicing is outsourced, the company should ensure that the service provider is updating their systems.
  • Inform all clients / vendors about the changes in your system.
  • Inform all employees. Knowing the new process will help them in collecting proper bills for business expenses like hotel bills, especially if the company wishes to claim VAT on these.  
For more information and assistance on the topic, please contact: info@nucleus-co.com
 
Copyright Nucleus Consultancy Services Pte. Ltd. 2018 ©