A guide to Italy’s B2B e-invoicing mandate
Country compliance and e-invoicing mandates can make it tricky for organisations to understand what’s expected of them and how to navigate the wealth of information available on the subject. Tungsten Network cuts through the complexity, addressing the most common issues related to the Italian B2B mandate and how we can help.
Why Italy has introduced the B2B mandate and what this means for you
Italy has one of the largest VAT gaps of any EU Member State, standing at a 35 Billion euros in 2015. In an effort to combat fraud and tax leakage, the Italian government has mandated a clearance model system as opposed to post audit.
If your organisation pays taxes in Italy and you send or receive invoices in Italy this applies to you.
This means all invoices must be submitted for registration, in a predefined Fattura XML format, through an online government portal, the Sistema di Interscambio (SdI), before becoming a legal tax document.
The deadline for the mandate came into effect on 1 January 2019 and the legislation is very clear about the consequences of non-compliance: if an invoice that is issued in any other way than electronically via the SdI in the Fattura XML format, it is not considered as issued, and therefore is subject to penalties (equal to 90 – 180% of the associated VAT dollar amount.)
This SdI process is mandatory for all B2B and B2C suppliers who are taxpaying entities in Italy
Get ahead of the deadline… choose Tungsten Network as
As recognised experts in compliance we’ve become an intermediary for the Italian Government mandate on preclearance e-invoicing.
In practice this means we simply ‘punch out’ the e-invoice information (no paper, PDFs or EDI) from the AR department to the Sistema di Interscambio (SdI) in their chosen format (Fattura XML). Once processed, we then retrieve and deliver it to the AP department for payment.
Whether you’re an existing customer on Tungsten Network or you’re looking for an e-invoicing intermediary partner just for Italy, we can help. Our solution allows you to send and receive 100% of your Italian e-invoices whether or not your customer is on Tungsten Network too.
Benefit from our wealth of expertise in removing friction from your AP processes – whether that’s improving:
24/7 accessible electronic archiving
Straight Through Processing (STP) efficiency
Visibility of Days Sales Outstanding (DSO)
Tungsten Network in Italy
- Compliant in Italy since 2005 for invoice processing and archiving
- 100% localised for the Italian Market with dedicated support staff, literature, and web portal
- Development changes to support the B2B mandate and FatturaPA XML format since the January 1st deadline
- Registered intermediary with the Sistema di Interscambio (SdI) allowing customers to handle their AP and AR invoices through one provider
- The world’s largest compliant e-invoicing network transacting in 192 countries and tax and legal compliant in 48 countries
- Our proven technology validates against your business and legal SdI requirements. Enriching and transforming the data allowing you to boost your automation and STP for 100% compliance
- White-glove supplier on-boarding service with guaranteed conversion
A brief history and the Italian requirements:
- B2G e-invoicing has been mandatory in the FatturaPA XML format since 2014
- Invoices are transmitted through a government portal, the Sistema di Interscambio (SdI)
- In 2016, the government also made the SdI available for B2B e-invoices, but adoption was limited
- Fast forward to 2018, a Budget Bill was passed to make B2B e-invoicing mandatory for any organisation registered to pay tax in Italy
- The deadline for compliance was January 1st 2019
- All organisations must find an intermediary to pass the Fattura XML file (invoice payload) to the SdI before issuing to the recipient
- Failure to invoice in this ‘pre-clearance’ way means the invoice is treated as if it was never issued
- Those who fail to comply face a penalty potential of 90 – 180% of the associated VAT amount