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
April 25, 2019
New Terrorism Compensation Scheme Introduced in Denmark

The Danish government has introduced new law creating a state-owned insurance scheme for compensation for losses arising from a terrorist attack using chemical, biological, nuclear and radioactive (CBNR) weapons. The scheme comes into effect on 1 July 2019. There had been concerns that CBNR terror coverage available in the market was limited and, as it […]

United States
April 24, 2019
Sovos CEO Named EY Entrepreneur of the Year 2019 Semifinalist

For more than 33 years, EY has been at the forefront of identifying game-changing business leaders and celebrating ingenuity through its Entrepreneur of the Year Awards program. The firm recently named Andy Hovancik, CEO, as a semifinalist in its Entrepreneur Of The Year 2019 New England Awards program, billed by EY as the world’s most […]

E-Invoicing Compliance EMEA LATAM Sales & Use Tax United States VAT & Fiscal Reporting
April 23, 2019
SAP Central Finance Drives Move to S/4HANA, Making Tax Compliance a Priority

SAP Central Finance is driving migration to SAP S/4HANA as companies look to deliver value to their finance and accounting organizations, as well as improve on the configuration of previous financial systems. And for most companies making the transition, tax compliance is a priority. In a recent survey by SAP Insider, 74 percent of SAP […]

EMEA VAT & Fiscal Reporting
April 23, 2019
Deadline Extended for Turkey’s E-Waybill Mandate

A draft circular, published by the Ministry of Treasury and Finance of Turkey on 15 May, has proposed an extension to the deadline for the mandatory issue of e-waybills. Whilst the circular still needs to be formally approved, the new deadline is expected to be 1 January 2020.  The postponement to the transition period gives […]

Brazil Colombia E-Invoicing Compliance EMEA Italy LATAM Mexico Sales & Use Tax Spain United States VAT & Fiscal Reporting
April 22, 2019
SAP Central Finance Migration: Tax Compliance Spells Trouble

SAP S/4HANA is the promised land for SAP customers: an entire suite of ERP functionality in one place with a single data store. The ability to run all ERP capabilities, both from SAP and non-SAP systems, from a single source represents delivery of a model IT professionals and SAP administrators have sought for years. Getting […]