E-invoicing model:
  • Centralised
Mandatory file format:
  • For invoices: FatturalPA
  • For Orders: Peppol BIS
B2G requirements:
  • F0r invoices: SDI
  • For orders: NSO
Archiving requirements:
  • 10 Year Period
E-signature:
  • Required

Summary

Italy was the first European country to implement countrywide mandatory B2B e-invoicing in 2019. On 1st July 2022, Italy introduced new requirements for cross-border data to be reported to the Sistema di Interscambio (SdI).

Non-compliance, intentional or not, can result in significant financial penalties, business disruption, and reputational damage.

Updates

11.17.22

  • Country updates
Compilation Guide update The Italian tax authorities previously released a new version, 1.7.1, of the Compilation Guide for electronic invoicing and the Esterometro, which updated Annex A of the technical documentation for B2B e-invoicing. This outlined further detail around document types TD17, TD18 and TD19 in Italy.    The Italian authorities have now released version 1.8 of the Compilation Guide regarding the Electronic Invoice and Esterometro. This includes the following changes: 
  • Further information relating to a new document type, TD28 
  • Further clarity around the usage of an existing document type, TD19. 
Tungsten Network has successfully enabled the new document type TD28.  These changes have taken effect from 1 October 2022.  The new documentation can be found via the following link:   https://www.agenziaentrate.gov.it/portale/documents/20143/451259/Guida_compilazione-FE-Esterometro-V1.8.pdf/c0aca469-4c4a-9b8d-048c-398412435c26 

10.24.22

  • VAT/G(S)ST rate information
Natural gas and energy providers – VAT mitigation Decree – Law No.80 has proposed several mitigation measures specifically designed to assist natural gas and energy providers.  The following measures have been anticipated:  
  • Reduced VAT by 5% for natural gas supplies of household and industrial use to apply the consumption invoices filed in the third quarter of 2022 
  • Conserving the miscellaneous charges for the natural gas sector enforced in the second quarter of 2022 
  • Zeroing charges in the electricity sector for the third quarter of 2022 
  • Providing some incentives for electricity and gas.   

09.12.22

  • Country updates
New technical specifications The Revenue Agency in Italy has announced a new version of the Technical Specifications (1.7.1) for electronic e-invoicing in Italy.  These are applicable from 1st October 2022.   The Technical Specifications are regularly updated with a view to improving the e-invoicing process, as well as highlighting changes to the invoice layout, amongst other modifications.    Changes to the Technical Specifications include the introduction of a new document type (TD28), relevant for purchases from San Marino, as well as the completion of a new field for certain transactions exempt from stamp duty.    Tungsten Network is analysing the changes to ensure we are compliant with version 1.7.1 of the new technical specifications from 1st October 2022. 

08.19.22

  • VAT/G(S)ST rate information
Extension of reduced VAT rates Inflation continues to soar across Europe, driving governments to address their fiscal operations and enact temporary VAT cuts. Considering rising inflation across the country, Italy has further extended the temporary VAT reduction on gas until 30 September 2022.

08.19.22

  • Country updates
Increase in stamp duty deferment threshold for e-invoices The Italian tax authorities have introduced some changes relating to the stamp duty deferment threshold for e-invoices. Semplificazioni Law Decree no. 73/2022 states that for e-invoices issued with effect from 1 January 2023, the threshold for deferment of payment of stamp duty for the first two quarters of the year will be raised from 250 Euros to 5,000 Euros. This will affect the timeframes within which stamp duty can be paid. Provided the amount related to stamp duty on electronic invoices issued in the first quarter does not exceed 5,000 Euros, it can be paid within the deadline for the payment of the second quarter liability (i.e. 30 September). If the amount relating to stamp duty on electronic invoices issued in the first and second quarters does not exceed 5,000 Euros, it may be paid by the deadline for payment of the third quarter liability (i.e. 30 November).

08.19.22

  • Mandate information
Extension of e-invoicing mandate scope Italy has extended the scope of taxpayers subject to mandatory e-invoicing in line with the following:
  • 1st July 2022: E-invoicing is mandatory for all businesses exceeding a turnover of 25,000 in the preceding year
  • 1st January 2024: E-invoicing is mandatory for remaining businesses.
Tungsten Network implemented the e-invoicing solution to facilitate domestic transactions in Italy via the Sistema di Interscambio (SdI) in January 2019.

08.19.22

  • Other applicable taxes
Introduction of the plastic tax Multiple countries are enacting legislation with a distinctly ‘green’ agenda. More recently, this year in April 2022 we oversaw the introduction of the plastic tax in the United Kingdom. Italy is enacting similar legislation with the introduction of the plastic tax on 1st January 2023. In many respects analogous to its UK counterpart, it aims to incentivise the use of recycled plastic. The below provides a summary of the main changes:
  • The tax applies to manufactured products for single use (MASCI)
  • All plastic is included with some exceptions (including compostable plastics, recycled plastic and plastic used for medical ends)
  • As in the UK, the tax is not set as a fixed percentage but will be charged at 450 Euros per tonne of plastic
  • The tax must be reported quarterly.
Spain is also enacting similar legislation. Please refer to this month’s Spain compliance updates for further information.

05.27.22

  • Mandate information
Expansion of scope of e-invoicing mandate We have published extensive updates on the obligation for taxpayers to report cross-border invoices to the Sistema di Intercambio (SdI), which becomes mandatory from 1st July 2022. The Draft Law Decree PNRR 2, the National Recovery and Resilience Plan, was approved on 13 April 2022. This has expanded the scope of the taxpayers now obligated to report their cross-border invoices to the SdI from 1st July 2022. Amongst the groups now subject to the e-reporting of cross-border invoices are:
  • Taxpayers who adopt the flat rate regime
  • Amateur sports associations and third sector entities with a revenue of up to 65,000 Euros

02.04.22

  • Mandate information
New e-archiving obligations from January 2022 now in force

New e-archiving obligations were introduced in Italy on 1st January 2022. These new obligations relate to the training, management and storage of documents issued by the Agency for Digital Italy, as well as specific information relating to metadata. These guidelines replace previous archiving regulations on the storage of tax documents. Tungsten Network is compliant with all archiving obligations further to the introduction of these changes.

02.04.22

  • VAT/G(S)ST rate information
2022 budget confirms delay to plastic and sugar tax and reduction in gas VAT rate

In the Italian 2022 budget, which has now been approved, Italy has delayed a tax to be applied to both plastic and sugar until 1st January 2023.
In the budget, Italy has also stated that gas for domestic and industrial production is cut to 5% between 1 January and 31 March 2022. This continues the 5% reduced rate that was applied from October 2021 to December 2021.
With inflation a widespread concern across Europe, we can expect other European states to adopt similar measures.

02.04.22

  • VAT/G(S)ST rate information
Further VAT-related measures in response to Covid-19

The last two years have shown the dramatic effect of the Covid-19 pandemic on the tax world. VAT-related measures as a direct result of the pandemic still continue.

Italy introduced Decree Law No 215, which states that any goods and services supplied to the government under EU law, will be exempt from VAT, if these goods and services are used to combat Covid-19.

01.04.22

  • Mandate information
EU Commission approval to extend B2B e-invoicing mandate until end of 2024

The derogation from Articles 218 and 232 of the VAT Directive meant Italy could continue to mandate e-invoicing until 31 December 2021. Italy has requested to apply for an extension to apply the B2B e-invoicing mandate until 2024.
On 13 December 2021, the European Commission approved the authorisation for Italy to continue to apply the B2B mandate until the end of 2024.

01.04.22

  • Mandate information
VAT electronic cash register reporting changes

There are new VAT obligations applicable to certain retailers in Italy from 1 January 2022. These new obligations were originally scheduled for 1 October 2021 but delayed due to the Covid-19 pandemic.

All retailers who are affected need to update their electronic registers for the transmission of daily transactions and VAT liabilities, resulting in greater visibility for tax authorities. Cash machine producers can carry out the required adjustments.

Retailers affected are:

  • All retailers subject to the 2019 internet-linked cash register transaction reporting* (see below);
  • Both residents and non-residents;
  • With a turnover of more than 400K Euros per year.

*In 2019, Italy introduced new regulations which meant certain retailers were required to transmit their daily takings to the Italian Internal Revenue Agency via the internet for goods and services sales with VAT applied. For businesses with a turnover of over 400K Euros per year, this requirement was introduced from July 2019; it was extended to other businesses on 1 January 2020.

12.06.21

  • Mandate information
Italy delays SDI cross-border invoice reporting to July 2022

It is very likely that Italy will delay the introduction of the mandatory e-reporting of cross-border transactions to the SDI to July 2022 (from January 1, 2022).
The delay was proposed in a very recent draft amendment to the tax law that arranges the withdrawal of the Esterometro Reporting and the transition to cross-border invoice reporting to the SDI. The amendment has been passed by the Italian Senate and is now in the hands of the Tax Chamber for final approval. This is generally seen as a formality as the amendment needs to pass into law by December 20.
Tungsten Network is investigating how the delay impacts customers that seek to go live with the cross-border invoice reporting ahead of July 2022 and we invite you to check regularly for the latest updates here.

07.04.21

  • Mandate information
Italy intends to extend and expand e-invoicing mandate

Italy would like to obtain a permit from the European Union to extend the obligation of electronic invoicing until the end of 2024. Furthermore, plans are being made to expand the range of subjects also to one and a half million professionals, self-employed and VAT numbers on a flat-rate basis, currently excluded.

03.31.21

  • Country updates
Further extension of new SDI rules

The use of Italy’s new Fattura XML format was originally mandatory from January 1, 2021 but was delayed until end of February 21. However, Italy has now again extended for the third time the newest rules relating to SDI invoices, The date from which the usage of the Fattura XML 1.6 becomes obligatory has been moved from 28th February 2021 to June 2021.
Tungsten Network has been ready for the new XML format from the voluntary introduction in September 2020.

12.03.20

  • Mandate information
Draft 2021 Budget Law drives changes to the e-invoicing mandate from 2022

The (draft) 2021 Budget Law will introduce changes to the Italian e-invoicing requirements, which will -in principle- come into effect from 2022:

  • Obligation to transmit transactions with non-residents (entities not established for VAT) to the Sistema di Interscambio (SdI). This in fact means that they cross-border reporting (Esterometro) will no longer be in use.
  • The FATTURA XML may see new fields and additional checks for supplies with declaration of intent.

12.03.20

  • Mandate information
Draft 2021 Budget Law drives changes to the e-invoicing mandate from 2022

The (draft) 2021 Budget Law will introduce changes to the Italian e-invoicing requirements, which will -in principle- come into effect from 2022:

  • Obligation to transmit transactions with non-residents (entities not established for VAT) to the Sistema di Interscambio (SdI). This in fact means that they cross-border reporting (Esterometro) will no longer be in use.
  • The FATTURA XML may see new fields and additional checks for supplies with declaration of intent.

06.27.18

  • Mandate information
Italy extends fuel suppliers deadline for B2B e-invoicing

The Italian government has announced that suppliers of fuel must begin sending B2B e-invoices by 1 January 2019, along with all other companies with an Italian VAT number.

04.19.18

  • Country updates
EU permits derogation for Italian B2B e-invoicing mandate

The European Commission has permitted a derogation to articles 218 and 232 of Directive 2006/112/EC for Italy, as their B2B mandate was in direct conflict to these. The Italian mandate can now be rolled out without contravening any EU laws.

04.19.18

  • Mandate information
EU permits derogation for Italian B2B e-invoicing mandate

The European Commission has permitted a derogation to articles 218 and 232 of Directive 2006/112/EC for Italy, as their B2B mandate was in direct conflict to these. The Italian mandate can now be rolled out without contravening any EU laws.

01.01.18

  • Mandate information
Italy mandates B2B e-invoicing

The Italian government has confirmed that B2B e-invoicing will become mandatory from 1 January 2019 (in some cases, such as suppliers of motor fuel oil or subcontractors employed by companies engaged in work with a public administration, the mandate will apply from July 2018).

05.31.16

  • Mandate information
Italy implements EU VAT Directive 55

The European Union (EU) VAT Directive 55 obliges all EU public authorities to receive invoices electronically, or at least to have a defined for how they will do so, by 27 November 2018.

Schedule a free consultation

Let us show you how we can support your business to send 100% compliant e-invoices in 54 countries. Please provide your details and one of our team will be in touch.