Changes to the mandatory business-to-business (B2B) electronic invoicing (“e-invoicing”) rules for transactions carried out with foreign business partners (i.e., taxpayers that are not resident or established in Italy and that do not have an Italian VAT number) will be effective as from 1 January 2022. Thus, Esterometro will be abolished and, consequently, all cross-border invoices (export, import, intra-community, etc.) will have to be sent to SDI on a transactional basis (i.e. the scope of mandatory e-invoicing will be extended).
Prepared by Alessandro Caridi, Flavia Barone e Fabrizio Tenuta
The Italian Government has issued the “Cura Italia Law Decree” providing measures to strengthen the National Health Service and economic support for families, workers and enterprises in connection with the epidemiological emergency COVID-19.
Prepared by Flavio Mondello Malvestiti, Ginevra Bruno, Enrico Cristoforoni
The measures aim to contain the economic damage caused by the COVID-19 epidemic.
The Italian Ministry of Finance has communicated on Friday, 13 of March that all the tax payments (among them VAT) due by March 16, 2020 will be postponed.
The Advocate General (AG) has opined that the principles of EU law do not preclude national legislation from assessing a taxpayer, who is presumed to have under-declared VAT, for unpaid VAT by means of estimating that taxpayer’s likely revenues based on studies of comparable taxpayers within the same economic sector. However, the national courts must ensure that principles of law, such as the right to challenge the basis of assessment, are respected (Fontana (C-649/16)).Read More »
Date: 27 March 2018
Time: 3pm to 3:30pm CET
Starting from 1 January 2019, electronic invoicing will be compulsory for all B2B transactions carried in Italy by Italian VAT registered, established and resident entities. Read More »
Following to the approval of the Financial Law 2018, starting from 1 January 2019, a mandatory electronic invoicing obligation will be in place for the supplies of goods or services carried out between subjects that are resident, established or VAT registered in Italy.
The e-invoicing obligation is aimed, on one hand, to spread the digital culture among the companies and, on the other hand, to prevent the tax evasion and VAT fraud.
Therefore, taxpayers will be required to set their informatics systems in order to send and receive .XML e-invoices through the Interchange System (so-called “SDI”). The level of intervention on the informatics system will depend on different variables and could be limited if one or more intermediaries are used in the process.Read More »
Discounts reduced the VAT value of pharmaceutical supplies:
Boehringer Ingelheim Pharma GmbH & Co. KG (C-462/16). Decision available here.
The Taxpayer, a German manufacturer, supplies pharmaceutical products to pharmacies. Retrospective discounts linked to the value of those supplies are paid, not to the pharmacies but to private health insurers which reimburse the insured persons buying the products from the pharmacies. The ECJ held that the Taxpayer can adjust the VAT due on its supplies retrospectively, even though the insurer was not in the original chain of supply. This judgment may be significant, and businesses may wish to consider protecting their position on adjusting VAT.
One question that may arise from this judgment is whether the fact that the discount in this case is a statutory discount restricts its scope. This might be one way that tax authorities could seek to narrow the scope of a favourable judgment. But this should not discourage suppliers in similar situations from considering protecting their position, as this is very positive and the ‘statutory’ aspect is only one consideration in a complex issue.
Please find information on how Italy will deal with the issue:
Newsalert – IVA e pay back farmaceutico (PwC, final 8 gennaio 2018)
The Budget Law 2017 has introduced, in the Presidential Decree no. 633/1972, the new title V-bis which regulates the institute of the VAT group, effective from January 1, 2018, subject to prior consultation of the European VAT committee.Read More »
In particular, art. 50-bis of Law Decree no. 331/1993 (the provision regulating VAT warehouse simplification in Italy) has been amended as follows:Read More »