Italy | Partial Postponement of Mandatory E-invoicing System for Supplies of Fuel

The start date of the mandatory real-time electronic invoice verification system for business-to-business (B2B) supplies of motor fuel sold at petrol stations, has been delayed to 1st January 2019.

Before 1st January 2019, companies may continue to use fuel cards or to log purchases by traceable payments. The postponement has been implemented in order to provide businesses with more time to prepare.

However, the initial 1st July 2018 launch date for the e-invoicing requirement, has gone ahead for the following:

  • B2B supplies of gasoline and diesel oil intended for use as motor fuels excluding supplies sold at petrol stations; and
  • Services rendered by subcontractors and contractors under agreements with public bodies.

Moreover, from 1st July 2018, taxable persons wishing to claim the input VAT on their fuel purchases (and also corporate income tax deductions) are required to make them with traceable payments which effectively means “no cash”.

As of 1st January 2019, real-time e-invoicing will generally become mandatory for all resident or established taxable persons in Italy, carrying out domestic B2B (and by customer request, business-to-consumer) transactions. Under the system, impacted taxpayers must create, submit and store the electronic invoices in XML format using the Revenue Agency’s e-invoicing platform (the Sistema di Interscambio or “SDI”) through which the tax authority monitors and validates the transaction in real-time before sending the invoice to the customer.

If you are affected by this development, it is prudent to seek advice early to ensure that your accounting and enterprise resource planning (ERP) systems will be ready to fulfil the necessary requirements. Please do get in touch with us to discuss how we can help you.