Italy Digital Tax Reform & E-Invoicing Highlights

eInvoicing will become mandatory for B2B and B2C among Italian operators, as of January 1, 2019 .

The E-Invoice must only be transmitted using the Interchange System (Sistema di Interscambio – SDI), managed by the Italian Tax Authorities.

The E-Invoice must be issued in a specific format (e.g., XML-PA); the Implementing decree may expand the list of acceptable formats

The statute of limitations period is reduced by two years, provided that payments over €500 can be traced and B2C shop sales receipts (if any) are electronically transmitted to the tax authorities

An invoice issued in a different format (paper, other formats) or not transmitted via the SDI is considered as “not issued“ and consequent penalties may apply up to 180%

Moreover, for both the public subcontract sector and for supplies of petrol or diesel fuel intended for use as motor fuel, the E-invoicing obligation will be effective as from 1 July 2018.