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Italy is given EU approval for mandatory e-invoicing

Wednesday 25th April, 2018

Italy is set to be the first European nation to implement mandatory e-invoicing for all domestic invoices.

On Friday 21st April, Italy was granted a derogation from Articles 218 and 232 of the EU VAT Directive and are now permitted to implement mandatory e-invoicing for all domestic business-to-business (B2B) and business-to-government (B2G) invoices. The derogation will be valid for 5 years with the possibility of extension.

The official date of mandatory e-invoicing will be on 1st July 2018 for fuel suppliers and sub-contractors to governmental suppliers. The current deadline for all other companies subject to the Italian VAT obligations is set for January 1st 2019. All invoices sent between trading partners including inter-company must be distributed via the governmental platform Sistema di Interscambio (SDI) in a structured format – FatturaPA.

The Italian Revenue Agency, Agenzia delle Entrate will have access to real-time invoice data when invoices are sent through the SDI platform. Invoices that are not distributed via the SDI system will lead to penalties of up to 180% of the owed VAT.

Italy hopes to have a B2B invoice system that follows the current B2G system where all invoices are sent via SDI in the FatturaPA structured format.