Italy is to offer a voluntary e-invoice/e-reporting regime to tax payers from 1 January 2017 also for B2B and B2C transactions (indeed, a similar system is already in place for B2G transaction). The measure is designed to reduce VAT fraud and simplify reporting. According to the Legislative Decree no. 127/2015, new rules related to business-to-business e-invoicing and e-Submission will apply. There will be several benefits to taxpayers who will adopt e-submission of the invoices issued and received and, where applicable, e-submission and e-recording of the daily considerations.
According to the Decree, starting from July 1, 2016, the Italian tax authorities made available to Italian taxpayers a free service in order to generate, submit and archive the invoices via electronic means. Moreover, starting from January 1, 2017, the Italian tax authorities will make available the Interchange data system (also called as SDI, already used in“business to government” transactions) in order to facilitate the e-invoicing procedure between supplier and customer.
Submission via electronic means of the considerations for certain transactions
From January 1, 2017, taxpayers who carry out certain transactions, which can be exempt from invoicing (e.g. hotel, restaurants, certain financial services) according to article 22, Presidential Decree no. 633/72, can opt for the electronic recording and submission to the Italian tax authorities of the data of the daily considerations regarding supply of goods or services.
The taxpayers who opt for the above will not keep the considerations register according to article 24, Presidential Decree no. 633/72.
Starting from January 1, 2017, the above e-recording and e-submission will be compulsory for those taxpayers who supply goods via vendor machines.
Certain decrees will be issued in order to define technical aspects.
Benefits in the case of e-transmission of invoices issued and received and, where applicable, submission and recording via electronic means of the considerations.
For subjects that want to opt for the submission via electronic means of invoices issued and received (it is a five years optional choice of the taxpayer renewable every five years) and, where applicable, for the submission via electronic means of the considerations, are envisaged several benefits in relation to tax obligations. For example, taxpayers will be exempted to submit (i) the so-called “Spesometro” communication, (ii) the Intrastat communication in relation to the Intra-community purchases of goods and services, (iii) the communication of the purchases from suppliers established in San Marino Republic.
Moreover, Italian tax authorities will handle the VAT refund, of those taxpayers, as a matter of priority within 3 months from the submission of the annual VAT return.
Finally, the period for a tax audit procedure, carried out by Italian tax authorities, will be reduced from five to four years if the taxpayer will guarantee the traceability of payments in accordance to a measure that will be issued by Italian Ministry of Finance shortly.
Furthermore, Italian tax authorities will handle the VAT refund of those taxpayers as a matter of priority and the period for tax assessment against such taxpayers will be reduced from 5 to 4 years if the taxpayer will guarantee the traceability of payments.
As mentioned, the exchange system is already in use for the billing of Italian government bodies (B2G transactions).
Finally, Italy’s tax authorities are effectively offering to electronically create, store and send tax payers’ invoices. The service is a major step towards the tax authorities taking over some VAT obligations. It could also eventually eliminate the need for the creation of paper invoices.
For further details please contact Luca Lavazza at email@example.com