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

Tax Information Reporting United States
2019-03-22
How to Respond to the Growing Challenges of 1099-R Reporting

The demographics don’t lie: Reporting for form 1099-R is only going to grow more difficult as baby boomers retire. The form used to report distributions from IRA, pensions, annuities and other similar retirement accounts is poised to explode in volume. As such, financial institutions (FIs) and insurance companies can’t afford to mishandle 1099-R reporting. The […]

E-Invoicing Compliance EMEA
2019-03-21
Portugal Issues New E-Invoicing Rules: A Flavour of Clearance but Not Quite There

On 15 February 2019, Portugal published Decree-Law 28/2019 regarding the processing, archiving and dematerialization of invoices and other tax related documents including: The mandatory use of certified invoicing software General requirements for paper and electronic invoices Dematerialization of tax documentation Archiving of tax documentation (including ledgers, etc) Adjacent tax rules and obligations The decree aims […]

EMEA LATAM VAT & Fiscal Reporting
2019-03-18
Are We in the Golden Age of VAT Recovery?

The value-added tax (“VAT”) was described in the EU as a “”money machine” over 20 years ago. Yet according to a 2015 study by the European Commission by the Centre for Social and Economic Research (CASE), the “VAT gap” was approximately 168 billion EUR. This represents 15 percent of the theoretical VAT that would be […]

Tax Information Reporting United States
2019-03-15
As Legal Sports Gambling Grows, So Does Growth in W-2G Reporting

With the NCAA basketball tournament approaching, the US is gearing up for its biggest gambling weeks of the year. And while most “March Madness” pools might technically be illegal, legitimate sports betting is sweeping the US following last year’s landmark Supreme Court decision allowing states to legalize sports gambling in casinos.   As legal sports […]

E-Invoicing Compliance EMEA Italy
2019-03-14
Italy E-invoicing: Esterometro Reporting Requirements for Cross-border Transactions Updated

What is Esterometro? The Italian government’s e-invoicing mandate became effective on 1 January 2019.  While cross-border invoices are exempt, all domestic B2B and B2C invoices must be cleared through the SDI platform. This means that the Italian government and tax authority now have real-time access to the data of all B2B and B2C VAT transactions […]