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B2B e-invoicing in Italy to become mandatory in 2019

Thursday 25th January, 2018

The Italian Government is aiming to implement the use of mandatory electronic invoicing between business partners from 1st January 2019.

The system for e-invoicing is already mandatory for the Public Sector has been in place since March 2015, requiring all B2G invoices (Business to Government) issued to be registered and stored electronically.

According to European E-invoicing Service Providers Association (EESPA), documents digitalisation in Italy and also in all of Europe is a necessary process for many reasons including:

• Fight against tax fraud
• More administrative flexibility
• Reduce bureaucracy complexity.

Since January last year all Italian VAT registered taxpayers have been able to use the voluntary e-invoicing and the electronic transmission of payments in their B2B transactions. Opting for this system allows companies to receive certain benefits in relation to their VAT compliance obligations.

Italian Tax Authority has decided to make B2B e-invoicing mandatory from July 2018:

- On 1st July 2018 B2B - e-invoicing will become mandatory for companies engaged in petrol sales and for sub-contractors to suppliers in public procurement.
- On 1st January 2019 B2B - e-invoicing will become mandatory for all companies (B2B).

Invoices will need to be issued in XML 1.2 format and transferred through the Italian Tax Authority to reach the final Business Partner involved.

The Italian government has offered multiple tax benefits to companies as the exemption from Intrastat reporting and priority for VAT repayments and two years of check terms reduction on private companies that guarantee payments tracking for business transactions exceeding €500,00.