Four Critical SAP S/4 HANA Considerations for Italy’s eInvoicing Mandate

Gustavo Jimenez
August 9, 2018

In 2014, Italy announced mandatory eInvoicing for certain business-to-government transactions, and the country has since progressed towards a full eInvoicing requirement.

Now, the biggest deadline in Italy’s tax modernization is quickly approaching. On Jan. 1, 2019, all B2B and B2C Italian taxpayers with electronic invoices will be affected. Businesses must plan now to ensure a multitude of processes are in place for compliance – from certified digital signatures to 10 years of archived transactions. For SAP customers, this transition likely comes in the midst of S/4HANA planning, making the process exponentially more complex.

Considerations for SAP customers

With the impending migration to HANA, companies doing business in Italy should consider an intelligent solution that maintains SAP as the central source of truth while having the flexibility to adapt to the EU’s frequent pace of change.

eInvoicing implementation is not a simple on/off switch. In order to have a continuous compliance solution, multinational SAP customers will need to address the following to comply with Italy’s new eInvoicing mandate:

  • Single System of Record within SAP: Companies need SAP master data to remain the unaltered source of truth. They should be able to run their businesses as they do today and not have to worry about compliance.
  • Nimble Response in an Ever-Changing Environment: SAP customers will need a solution that will keep them compliant as the Agenzia Entrate (Italian tax administration) evolves its eInvoicing mandate and makes it more complex.
  • Local Knowledge with Global Reach: SAP customers need a native SAP eInvoicing framework that follows Italy’s FacturaPA eInvoicing specifications and keep business compliant.
  • Holistic Compliance: Italy’s eInvoicing mandate is interconnected. Companies need a solution that will keep their keep businesses compliant with all four corners of the mandate: billing, purchasing, archiving, and reporting.

The Sovos approach

Sovos has a long history of developing eInvoicing solutions. Here are some factors that differentiate Sovos SAP eInvoicing solutions:

  • Experience: Sovos has been providing continuous eInvoicing compliance for SAP multinationals in Latin America, the most complex landscape for eInvoicing, for more than a decade. Sovos also operates locally in Italy, providing compliance archiving and signatures (eIDAS) for more than a decade.
  • Complete eInvoicing Solution: For both accounts receivables, accounts payable, and reporting.
  • Embedded (65 + OEMs): Leading EDI, Accounts Payable & Procure-to-Pay Networks embedded with Sovos Italy compliance.
  • Global Reach: Largest clearance network in Latin America, with more than 2.6 billion eInvoices processed annually. Full Europe support for Spain SII, Hungary KOBAK, Portugal SAF-T and more.

Companies doing business in Italy that don’t prepare put themselves at risk of penalties for inaccurate or undocumented invoices that range anywhere from 90 percent to 180 percent of the VAT inaccuracy – as well as costly disruption to their most important SAP initiatives.

Take Action

The Sovos Intelligent Compliance Cloud is the first complete solution for modern tax certified for SAP. Our Italian eInvoicing solution integrates with SAP through a real-time connector, automatic file upload or manual import process. Learn how Sovos is helping companies across the globe stay ahead of disruptive changes in tax and safeguard the value of SAP implementations here.

Sign up for Email Updates

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

Author

Gustavo Jimenez

Gustavo is Sovos’ Product Marketing Manager for eInvoicing solutions.
Share This Post

Sales & Use Tax United States
June 17, 2019
South Dakota v. Wayfair One Year Later – Retrospective and Look Ahead Webinar

Since the groundbreaking Supreme Court decision in South Dakota v. Wayfair last June, tax compliance requirements of sellers have undergone a seismic shift. In recent months, we have also witnessed a series of after-shocks directed at setting the foundation for U.S. sales tax compliance in the modern age. In a live webinar and Q&A, “South […]

United States
June 14, 2019
Sovos Again Named a Top Workplace Based on Employee Satisfaction

Earlier this week, the Star Tribune (Minneapolis, MN) released its annual list of Top Workplaces. The newspaper compiles this list based on employee satisfaction scores for companies across Minnesota. Sovos has once again been named to this list as a national standard setter of leading workplaces because of the actions we take to put employees […]

E-Invoicing Compliance EMEA
June 13, 2019
French VAT Fraud Prevention Package to Include a New Attempt to Mandate B2B E-invoicing

The French Minister of Public Accounts and Action, which has authority over all tax matters, has taken advantage of the process that is required to transpose the EU E-Commerce Directive to launch a number of initiatives to curb VAT fraud, including a renewed attempt to create a system of mandatory e-invoicing. Going from B2G to […]

EMEA IPT
June 13, 2019
Knowing When and How to Reclaim IPT

An insurer may need to reclaim insurance premium tax (IPT) from a tax authority for many reasons. These include a policy cancellation or mid-term adjustment, an administrative error or issuing a no claims bonus. In each case, it’s important to be aware of the issues involved ahead of any reclaim to ensure taxes are recovered […]

Sales & Use Tax United States
June 7, 2019
Marketplace Sales Tax Collection Rules and Current State of Affairs

Marketplace sales tax laws are being used by states as an additional means to collect more sales tax revenue from remote sellers on marketplaces like Amazon, eBay, Etsy, and WalMart. These online marketplaces and the rules being introduced to compel marketplace tax compliance have introduced new sales tax collection and remittance questions and complexity. According […]