Italy FatturaPA regulation and obligations for VAT compliance are in effect, regarding the provision of products or services delivered by entities that are resident, established or VAT registered in Italy.
Italy Fatturapa Reegulation and Obligations foe Vat Compliance
Numerous factors will affect the extent of modification that will be required for currently used infrastructure. Use of one or more intermediaries in the process may facilitate the things and allow limitation of modifications to be made. Highlights of new practice set forth in the Financial Law 2018 for e-invoicing is briefly listed as follows:
E-invoice format and due dates
Invoices should be converted into XML format, as per technical requirements outlined in Decree no. 55 dated April 3, 2013; They must be digitally signed; They must be transferred to the addressee via SDI.
If a mutual agreement on transmission of e-invoices is established by the relevant parties, then authorized intermediaries may be of use for the taxpayers. In any case, the supplier will be kept responsible for issuance of invoices by Tax Authorities. It is indicated in the Law that other e-invoice formats may also be used as well provided that these formats follow standard or rules accepted in the European Union. It should be noted that some taxpayers in specific sectors will be affected by e-invoicing regulation well before January 1, 2019. For example, the supply of petrol or diesel fuel the services offered by subcontractors, or of a business chain, within the scope of a procurement contract for works or services delivered to public administration, will require the use of e-invoices as of 1 July 2018. Taxpayers subjected to the e-invoice Use of e-invoices formatted in XML is required for provision of goods or services rendered offered by taxable real or legal entities that are resident, established or identified for VAT purposes in Italy. An exception for above-mentioned regulation is for the invoices issued or collected by non-resident taxpayers since they are not VAT established or VAT identified in the State. Just to give an example, e-invoice will not be required for consulting service provided to an entity in France by a taxable entity in Italy. E-invoicing is a compulsory practice also for B2C transactions (i.e. “business to consumer”), if the supplier must issue an invoice. In such cases, electronic invoices issued to private consumers are requested to be delivered to them by the Italian tax authorities’ electronic services. Moreover, a copy of the electronic invoice or paper invoice should be sent to customer by supplier. Accordingly, it is the consumer will decide to waive its copy of the e-invoice or paper invoice.
Simplifications and Tax Exemptions
The e-archiving obligation for taxation affairs will be satisfied by the e-invoices, plus by the other e-documents submitted through the interchange system (timescales and procedures will be defined by a specific act); Article 21, Decree-Law no. 78/2010, which oblige taxpayers to submit the “Spesometro” is canceled; As soon as this tax data is obtained, Italian tax authorities will assist to the taxpayers perform arts, professional activity or business activity following “simplified accounting” for the calculation of their taxes and for the draft of the tax return.
If you need further informatoin or assistance, you may request a FatturaPA Italy SAP Add-on Demo Session from S4FN.