Italy Moving Towards ‘Clearance On Demand’?

Sovos
February 23, 2017

The Italian government has in recent years put in place a package of legal measures with the ambition of boosting the adoption of e-invoicing across all sectors and especially for SMEs. Not too long ago, the government went so far as to make the Sistema di Interscambio, the public platform used to issue B2G e-invoices (FatturaPA), available also to private companies for issuing B2B e-invoices – all free of charge.

This possibility was also coupled with a range of additional incentives; the underlying rationale being that if the technical threshold is lowered, while at the same time other administrative burdens are removed, more companies will be inclined to switch from paper to e-invoices using the public platform, thereby giving the state access to large amounts of data which in turn will effectively fight VAT fraud. One of the incentives is that taxpayers who use the platform for all their invoices (B2B, B2G and B2C) would not need to submit the quarterly e-report of a subset of invoice data.

It’s an interesting development, but more interesting still is how the Italian tax authority will leverage this big heap of fiscal data that it will soon have easily accessible. The more B2B e-invoices (and thereby raw fiscal data) the government gets access to, the lesser the need to have ancillary reporting requirements met. Why would the tax authority need to review reports of various e-invoice data if the e-invoices themselves are issued and stored within the government platform in a conveniently pre-defined XML format? No reason at all.

What we are seeing is a fundamental shift taking place. In the past we’ve said that the entire world is slowly moving in the direction of Clearance systems (such as Mexico, Turkey and Brazil to name a few). In the EU, we’ve predicted that B2G platforms would be used for clearance – Italy may be the first in a series of countries going down that rather obvious path of adopting clearance elements to its VAT system.

Sign up for Email Updates

Stay up to date with the latest tax and compliance updates that may impact your business.

Author

Sovos

Sovos is a leading global provider of software that safeguards businesses from the burden and risk of modern transactional taxes. As VAT and sales and use tax go digital, businesses face increased risks, costs and complexity. The Sovos Intelligent Compliance Cloud is the first complete solution for modern tax, giving businesses a global solution for tax determination, e-invoicing compliance and tax reporting. Sovos supports more than 7,000 customers, including half of the Fortune 500, and integrates with a wide variety of business applications. The company has offices throughout North America, Latin America and Europe. Sovos is owned by London-based Hg. For more information visit www.sovos.com and follow us on LinkedIn and Twitter.
Share This Post
Share on facebook
Share on twitter
Share on linkedin
Share on email

North America ShipCompliant
May 14, 2021
Alabama Is Latest State to Permit Direct-to-Consumer Shipping of Wine

Alabama Governor Kay Ivey signed HB 437 into law on May 13, 2021, making Alabama the latest state to legalize direct-to-consumer (DtC) shipping of wine. With this step, only Delaware, Mississippi and Utah continue to prohibit this popular and valuable means of selling wine. Alabama’s new DtC law will not become effective until August 1, […]

Tax Compliance Tax Information Reporting
May 14, 2021
Anatomy of a Due Diligence Letter

What is unclaimed property due diligence? An unclaimed property due diligence letter is an organization’s last chance at contacting an apparent owner and preventing their property from escheatment. Each state or reporting jurisdiction has its own unique set of requirements and standards. Due diligence letters are typically required to be sent 30 to 120 days […]

EMEA VAT & Fiscal Reporting
May 13, 2021
EU Council Approves DAC7 Rules on Digital Platform Tax Reporting

On 22 March 2021 the EU Council approved DAC7, which establishes EU-wide rules meant to improve administrative cooperation in taxation. In addition, the Directive addresses additional challenges posed by a growing digital platform economy. What is DAC7? In 2011, the EU adopted Directive 2011/16/EU on administrative cooperation in the field of taxation in the EU […]

E-Invoicing Compliance EMEA VAT & Fiscal Reporting
May 13, 2021
Russia Introduces Mandatory E-Invoicing From 1 July 2021

Russia introduces a new e-invoicing system for traceability of certain goods on 1 July 2021. Federal Law No. 371-FZ will amend the Russian Tax Code to introduce the new procedure for the traceability system, which will bring the introduction of mandatory e-invoicing for taxpayers dealing with traceable goods. Since its introduction, B2B e-invoicing in Russia […]

North America ShipCompliant
May 12, 2021
Tennessee Set to Impose Regulations on Fulfillment Houses in DtC Wine Shipments

On May 6, 2021, Tennessee Governor Bill Lee signed HB 742 into law, establishing a slew of new provisions affecting the direct-to-consumer (DtC) shipping of wine in the state. These provisions, however, will not become effective until January 1, 2022. While the bill does impose several new restrictions and requirements on businesses involved in DtC […]