Is E-Invoicing The Solution To All Evils?

Jan 12, 2019 73

BY: Edoardo Murari

On January 1st 2019, the system of electronic invoicing became mandatory for private businesses. Italy is the second European country to introduce this informatic system after Portugal, where it is mandatory since 2012. The measure follows the European Union VAT directive aimed at modernizing public administration and fighting tax fraud. While the e-invoicing had already become law in Europe for businesses to government (B2G) in 2015, it is still optional for businesses to taxable subjects (B2B) and private consumers (B2C). In 2017 thus, the former Gentiloni government had to request a permit to the European Commission to make it mandatory.

The eletronic invoice has to be completed in a specific digitally signed xml format (eXstensive Markup Language) and then it must be sent to the so-called “Sistema di Interscambio” (SDI). The Italian Revenue Agency currently uses this platform for the electronic invoices directed to public bodies and is responible for checking whether the invoices are filled in the correct way. If something is wrong, the platform will send the invoice back to be redone. In this way, the Italian Revenue Agency should finally manage to get a full picture of the Italian economy, finding the non-declared IVA (the Italian VAT) and reporting it to the competent authorities.

 

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SOURCE: https://italicsmag.com/

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