As governments worldwide work to improve their fiscal health and ensure their Treasury records taxes correctly, mandated e-invoicing becomes increasingly common.
Leading the way in Europe, Italy was the first country to implement countrywide mandatory B2B e-invoicing in 2019. Now, Italy has introduced new regulations regarding cross-border invoicing, which will come into effect on July 1st, 2022. Ahead of the upcoming changes, since January 1st, Tungsten Network allows Italian businesses to report 100% of their cross-border invoicing to make the transition easier and faster.
This article investigates how the new regulations will affect cross-border invoicing in Italy and examines how businesses can prepare for the changes.
Before the new mandate, domestic invoices had to be sent to the Italian Revenue Agency through Sistema di Interscambio (SDI) and cross-border invoices via the periodic tax reporting scheme, Esterometro.
However, Esterometro will become obsolete by July 2022 as Italy plans to make real-time reporting via SDI mandatory for cross-border transactions as well. Italian businesses will no longer be required to file a sale and purchases report through Esterometro for these transactions, since everything will be processed electronically through the SDI platform.
The new mandate will apply to the following transactions:
As a result of the new mandate, deadlines for filing reports will become much tighter:
Starting July 1st, the penalty for transactions carried out in the incorrect format is €2 per invoice, up to a maximum of €400 per month.
However, if the transmission is made within 15 days of the deadline or if the data is correctly transmitted within the same deadline, the penalty is reduced by half to up to €200 per month.
For more details about the new regulations, visit Italy’s Gazzetta Ufficiale.
As e-invoicing surges worldwide, businesses must keep up with new laws, mandates and compliance requirements. To do so, companies will need to set up specific procedures to determine compliance with the e-invoicing and reporting system. In addition, organisations should consider conducting specific and periodic checks to ensure continued compliance with the standing regulations.
If the specific IT skills and tax knowledge required to perform these tasks can’t be found internally, companies are advised to assign these tasks to a third-party provider.
Tungsten Network can offer a stable solution that allows companies to report 100% of Italian sales and purchase invoices to SDI, including domestic, cross-border and intercompany invoices ahead of the deadline.
Businesses will benefit from having one provider handling and pre-validating all their Italian invoices before they are reported to SDI. This system reduces errors, improves recording and streamlines the entire reporting process. In addition, Tungsten Network offers compliant archiving for all invoice types, offering reassurance and peace of mind.
If the following statements apply, your company should be adequately prepared for the new Italian mandate:
Tungsten Network is committed to being the world’s most trusted businesses transaction network and offering Italian businesses the opportunity to adopt the new cross-border reporting six months ahead of its mandated introduction.
Discover how your business can achieve world-class performance. Schedule a free consultation today.
Sign up to receive our monthly insights newsletter
Industry reports and updates, delivered