Since the introduction of (Sistema di Interscambio) SdI pre-clearance model in January 2019, e-Invoicing is obligatory for B2C and B2B transactions in Italy. With this implementation, Italy became the first EU country to make B2B e-Invoicing mandatory by adopting a clearance model. Regarding the pre-clearance; firstly taxpayers need to transmit their invoices to the government portal for validation and approval, then invoices become available to the customer for download and delivery. While the invoices’ required format is FatturaPA, they are transmitted via SdI. The Fatturapa is an electronic invoice and is the only acceptable invoice type by Public Administrations. It has the following characteristics:
- While it is the only type accepted by SdI, the content is structured in an XML file.
- Affixing a certified electronic signature or a digital signature is important for the integrity of the content and the authenticity of origin.
- The transmission depends on the presence of the unique identification code of the office to which the invoice is addressed.
Before being transmitted to the SdI, invoices are automatically generated in the supplier’s ERP system. After that, an electronic message indicating the success of the submission will be received from the SdI. Finally, the electronic invoice is transmitted by the SdI to the recipient. Also, the issuer receives a confirmation as proof of acceptance. Taxpayers that adopt the flat-rate tax regime with an annual turnover which is not above the amount of EUR 65,000 were excluded from the obligation, however from July of 2022, the threshold has been reduced to EUR 25,000. As of January 2024, the exclusion that relates to the turnover from the obligation will be removed and all taxpayers that adopt the flat rate scheme will need to send invoices electronically. The e-Invoicing obligation in Italy aims to tackle VAT evasion, also helping to simplification of fiscal and administrative processes.