Italy: Is a Last-Minute Moratorium on E-invoicing Fines on the Horizon?

Francisco de la Colina
February 12, 2019

There is no doubt that the roll out of the Italian clearance e-invoicing mandate has kept the e-invoicing market and local taxpayers on their toes. Compliance with the mandate’s legal and technical requirements is not an easy task to fulfil. Consequently, taxpayers of different sectors of the economy, as well as different stakeholders of the e-invoicing supply chain affected by the mandate, have continually tried to find a way to extend the period given to adapt to the new reality.

As explained in previous posts, the Italian government provided taxpayers with a “rolling grace period” during 2019 to try and meet the needs of different sectors of the Italian economy.

Now, seven weeks into the new e-invoicing regime, news of requests for a relaxation to the framework keep arriving, but now in the form of a “moratorium on the application of fines for non-compliance.” The new request was presented by the Consiglio Nazionale dei Dottori Commercialisti e delgi Esperti Contabili – CNDCEC (the National Chartered Accountants and Accountancy Experts Council) to the Ministero dell’Economia e delle Finanze – MEF (the Ministry of Economy and Finance) and to the President of the Agenzia delle Entrate, the Italian tax authority.

So, what does this request for a moratorium mean?

In a nutshell, the request asks for a delay in the date for when non-compliance leads to a fine. As a general rule, most e-invoices must be issued and transmitted to the exchange system (SDI) at the time of the transaction. Non-compliance with the requirement equals sanctions in the form of fines.

However, the grace period given for taxpayers to adapt to the mandate means that transactions concluded in January can be transmitted to the SDI for clearance at the latest by the end of the tax liquidation period (i.e. by 16 February in the case of taxpayers who are subject to a monthly liquidation period), and companies would not be fined for issuing and clearing the invoice late.

The new request for a moratorium asks for a further delay before a fine would be due for late transmission to 16 March. So, if the request is approved, an e-invoice documenting a transaction that occurred in January could possibly be transmitted to the SDI by 16 March without fines*.

The problem is amplified given the short period remaining until the first liquidation period of the year ends on 18 February (the 16th is a Saturday). It remains to be seen if the Italian government can react in time and provide clarity to the situation or if it is at all inclined to agree with the request.   

Find out more about the request submitted by the CNDCEC.

*The proposal includes the delay of other deadlines to comply with other fiscal obligations that fall outside the scope of this present article.

Take Action

Read more about e-invoicing this comprehensive industry report from Sovos. Or contact Sovos about managing e-invoicing mandates in Italy. 

Sign up for Email Updates

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

Author

Francisco de la Colina

Francisco de la Colina is a lawyer working on the regulatory team at Sovos TrustWeaver.
Share This Post

EMEA IPT
May 23, 2019
Key Reporting Considerations for Insurers Writing Insurance Across the EU

Freedom of services insurers are faced with a number of different obligations when entering new territories and writing insurance business within the European Union.  One that may initially be overlooked relates to which policy details are required to be recorded and then reported to the tax authorities.   It is essential that all insurance premium […]

E-Invoicing Compliance EMEA
May 23, 2019
Europe Embraces Digitized Invoices but Country Specific Requirements are Diverse

Based on the Billentis report of 2019 (The E-invoicing Journey 2019-2025), automated e-invoicing will generally result in cost savings of 60-80% compared to conventional paper format invoices. In this age of digital transformation, optimizing invoice flows is top of corporate agendas for most companies to improve efficiencies and reduce operating costs. And many companies want […]

Colombia E-Invoicing Compliance
May 22, 2019
Colombia anuncia el nuevo modelo de validación previa y el protocolo UBL 2.1 para su mandato de facturación electrónica

La autoridad fiscal de Colombia, DIAN (Dirección de Impuestos y Aduanas Nacionales), ha anunciado nuevos cambios a su mandato de facturación electrónica que serán implementados según la Resolución 020, orientada a las empresas que aún no han adoptado este modelo de facturación. Quienes ya son facturadores electrónicos deberán implementar el nuevo modelo antes del 2 […]

E-Invoicing Compliance LATAM VAT & Fiscal Reporting
May 22, 2019
A New VAT System for Costa Rica – Part I

The Costa Rican government enacted law 9635/2019 which introduces a new value added tax (VAT) system effective July 1, 2019. The new VAT replaces the current hybrid General Sales Tax (locally known as IGV) which existed for almost four decades. The new VAT is markedly different from the IGV, with some of the key differences […]

EMEA IPT
May 22, 2019
How to Calculate Hungarian Insurance Premium Tax

Many insurance premium taxes (IPT) and levies exist throughout Europe and, due to the lack of tax harmonisation, there are no general rules governing how the tax is calculated.  There are a number of different ways to calculate these taxes that are used across the EU including percentage rate, fixed amounts, sliding scales and other […]