Italy Set to Implement Electronic Invoicing in 2018 and 2019

Italy published its Budget Law of 2018 in the Official Gazette on December 29, 2017, which came into force on January 1, 2018. Of particular interest, a two-phase approach to electronic invoicing was announced. As of July 1, 2018, electronic invoicing will be mandatory for B2B supplies of gasoline, or diesel fuel intended for use as motor fuel, and for services rendered by subcontractors under a contract with public bodies. As of January 1, 2019, however, electronic invoicing will become mandatory for all B2B and B2C supplies of goods and services between parties established or VAT-registered in Italy (for B2C, only if the customer expressly requests an invoice). The electronic invoices will have to be issued through the Sistema di Interscambio system (SDI), which is the platform Italy currently uses to transmit electronic invoices to public bodies, and which allows the Italian Revenue Agency to collect details of e-invoices. The electronic invoices will also have to be issued in the Fattura PA format, which is the only one currently admitted through the SDI. The electronic invoicing mandate will have further details to be released this spring by the Director of the Italian Revenue Agency. As the mandate currently stands, it will require derogation from the EU VAT Directive because of issues with buyer's consent, the freedom to choose document format, and the issue of freedom to choose an Integrity and Authenticity method.