The Grace Period is over in Italy!

It has been more than 6 months now since the Italian taxpayers adapted to the e-Invoicing system.

According to the Agenzia Entrate’s statistics, the number of e-Invoices exceeds 1 billion files, which are transmitted through SDI for the first 6 months.

Italian tax authorities made simplifications for the taxpayers for the first half of 2019 to adapt to the new e-Invoicing system last year with the Decree 119/2018.

Since the so-called “Grace Period” is now over as of 1st of July, it’s time to remind you of the changes and penalties that would apply after then!

With circular letter no:14/E 2019 published on June 17, 2019, authorities provided additional clarifications on e-Invoicing and the reporting of cross-border transactions.

Simplifications During The Grace Period

Reduced Penalty Regime For Mandatory e-Invoices

For the first half of 2019, for both suppliers and customers, the penalties would be reduced as follows:

  • Up to 30th June 2019; no penalties applied if a compliant e-Invoice is issued within the deadline for the VAT settlement of the relevant month.
  • Penalties will be reduced by 80% if a compliant e-Invoice is issued within the deadline for the VAT settlement of the following period. For taxpayers who pay VAT monthly, this is applicable until 30 September 2019.

Invoicing Deadlines & Registration of the Invoices

  • The Decree makes two amendments about the invoicing deadlines from 1 July 2019.
  • Immediate invoices will have to be issued within 10 days of the tax point (prior to this decree, immediate invoices should be issued by midnight of the day on which tax point was triggered). However, these invoices must be registered in the related period of the transaction.
  • 10 days of sending invoices to SDI, after the transaction takes place is extended to 12 days.
  • If the invoice is not issued on the tax point date, it should include a reference to the tax point.
  • According to the new rules, sales invoices should be recorded in the outbound VAT ledger by the 15th of the following month.

Recording of the inbound invoices: VAT ledger & VAT recovery time

  • Sequential numbering of the purchase invoices will no longer be required.
  • VAT Protocol number will also be no more required, as SDI will assign a unique ID to the invoices.
  • VAT payers can deduct VAT for the invoices which they receive and register till the 15th of the following month, within the same year.

Double Date

If there is a mismatch between the date of the transaction and the issue date of the invoice, the taxpayer should enter both of the dates. 

However, to overcome the issue to enter both of the dates in the e-invoice, Circular 14/E states that the transaction date should be entered in the date field, instead of the issue date. The issue date, which is the date of transmission to SDI, will be assigned directly by SDI.

Why You Need SAP FatturaPa Sovos Foriba Cockpit

Using one reliable platform to manage the exchange of electronic invoices within SAP, is what you need to stay compliant not only in Italy but also in various countries. We deliver 25 different solutions and services in more than 10 countries with regulatory compliance requirements! 

Foriba SAP Regulation cockpit for e-Invoicing.For e-Invoicing in Italy, we provide SAP FatturaPa Sovos Foriba Cockpit which is useful for;

  • Taxpayers in the scope of e-Invoicing in Italy or who might voluntarily use Italian e-Invoicing (e.g., non-residents in Italy or non-established taxpayers in Italy)

Here is what you can from SAP FatturaPa Sovos Foriba Cockpit;

  • Standard SAP integration which is not affected by SAP version upgrades
  • Compatible with various SAP versions (no prerequisites required)
  • Is not affected by SAP version upgrades
  • Integration with third-party platforms 
  • Inbound invoice management
  • Compatible with S/4 Hana
  • Detailed reporting options
  • Connectivity with SDI
  • Signature & Archiving

Additional Sovos Foriba SAP Tools for Italy

  • Sovos Foriba VIES Integrator Tool
  • Sovos Foriba Invoice Alignment Tool
  • Italy Inbound Invoice Automatic posting
  • Sovos Foriba SAP Esterometro Add-on

To learn more about SAP FatturaPa Sovos Foriba Cockpit, please feel free to get in contact with us! We are always happy to answer your question to determine your needs to provide the best experience!

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