Earlier this year, we reported on Italy’s ambitious announcement to become the first country in the EU to adopt a live invoice verification regime, which would allow the tax authorities to audit and monitor transactions in real-time. Under recently amended legislation however, the plan has (for now at least) been watered down into an electronic invoice reporting system similar to others we have recently seen being implemented throughout Europe, most recently by the Canary Islands.
As of 1st January 2019, in Italy there will be a mandatory real-time electronic invoicing requirement which will cover nearly all domestic business-to-business (B2B) and business-to-consumer (B2C) supplies of goods and services performed by businesses established in Italy. This new regime will not affect distance sellers since it won’t, at the outset, apply to non-established businesses.
Impacted taxpayers will have to issue and submit electronic invoices and related documents in XML format through the Italian e-invoicing platform, known as the” SDI”. The invoice data will be checked by the Italian tax authority and verified prior to being sent to the customer, on the supplier’s behalf.Initially, the requirement was that invoices must be submitted to the Italian Revenue Agency in real-time meaning on the same day that the transactions are performed. However, this is where changes have happened and now:
From 1st January 2019 until 30th June 2019:
- Invoices submitted through the SDI, within the deadline of the relevant tax reporting period, will not be subject to penalties; and
- Invoices submitted through the SDI, within the deadline of the subsequent tax reporting period, will be levied only 20% of the applicable penalties.
From 1st July 2019:
- Invoices must be submitted through the SDI within ten days of the transaction being performed.