E-INVOICING

Italy has introduced a clearance e-invoicing model for domestic transactions, including B2B and B2C.

Seeking to close a 35 billion euro tax gap, Italy has implemented a clearance e-invoicing model for domestic transactions. The Italian tax authority now has to clear all invoices before payment or shipment can take place. 

As a result, businesses need to adopt an e-invoicing system capable of integrating with ERP, MPS and automation platforms.

Mandate quick facts

  • First clearance e-invoicing model in Europe 
  • Uses eIDAS, the highest standard of e-invoice signature in Europe
  • All invoices must be in the XML schemas published on the SDI site.

Mandate rollout dates

  • July 1, 2018: Clearance mandate goes into effect for manufacturers and distributors of petrol and diesel intended for use as motor fuel in cars and road vehicles.
  • September 1st, 2018: Mandate kicks in for tax-free sales to non-EU individuals acting as final consumers.
  • January 1, 2019: Mandate becomes a requirement for domestic B2B and B2C transactions, with minor sector-specific exceptions.

Penalties

  • Failure to issue an invoice or issuing an invoice that does not meet the XML format will result in a penalty equal to between 90% and 180% of the associated VAT dollar amount.
  • Issuing a purchase invoice to a client without adhering to mandate requirements will result in a penalty equal to 100% of the associated VAT dollar amount.

How Sovos Helps Companies Stay Compliant with Italy E-invoicing

The Sovos e-invoicing compliance solution serves as a true one-stop-shop for managing all e-invoicing compliance obligations in Italy and across the globe. Combining disparate local solutions in countries around the world is both costly and risky. The Sovos SAP Framework Solution is tailored to manage specific e-invoicing scenarios in Italy as well as handling requirements in other countries around the world. It allows companies to invoice seamlessly within SAP and also monitors both AR and AP compliance processes, end-to-end, all within SAP.

More than a decade of experience in Italy

Sovos has provided services in Italy for more than 10 years. The Sovos platform covers billing, accounts payable, e-sign, VAT Reporting and VAT digital reporting.

Certified for Namespace and SAP with a path to S/4HANA

The Sovos embedded SAP solution enables AR and AP users to manage daily operations within SAP streamlining processes, maintaining SAP as the single source of truth.

70+ OEMs

Sovos e-invoicing compliance solutions integrate seamlessly with Ariba, Coupa and many other payment solutions.

Feature list

Easily configure the e-invoicing processes

Sovos provides SAP expertise in countries around the world, eliminating the need for SAP customers to find and provide experts themselves.

E-invoicing compliance solutions tailored to market-specific requirements and scenarios

The embedded SAP solution enables AR and AP users to manage daily operations within SAP streamlining processes, maintaining SAP as the single source of truth. Sovos provides global reach with in-house regulatory expertise for both pre-clearance and post-audit transactional invoicing. When tax authorities introduce new or modify existing mandates, Sovos keeps track so SAP customers stay compliant, enjoy peace of mind and avoid business disruptions.

Functionality embedded in more than 60 leading global EDI and P2P networks, including SAP Ariba

Sovos eInvoicing compliance works directly inside the most popular and most complex EDI and P2P systems, eliminating the need to fund and maintain expensive integration projects.

Change management function monitors and maintains the e-invoicing system

Not only do SAP customers save money by not having to build internal SAP data extraction and mapping logics within SAP for their e-invoicing processes, they also don’t have to incur the significant costs of monitoring and maintaining those systems.

Reserved, native SAP namespace

Built directly into SAP with its own namespace, the Sovos e-invoicing compliance solution delivers the tools SAP customers need to manage, control and monitor e-invoicing compliance processes in real time.