Since the entry into force of e-invoicing in 2019, Italy has recovered around €2 billion in VAT. All this has been possible thanks to the elimination of invoices in paper format, which made the process more transparent.
The obligation to use e-invoicing in Italy was extended in July 2022 to other taxpayers (linear taxpayers), whose turnover is above EUR 25,000, and from 2024 it will also cover those taxpayers whose turnover is below EUR 25,000.
From July 1, 2022, businesses paying the 15% flat rate of tax (or 5% in the first five years of the company's operation) in the case of income and fees exceeding EUR 25,000 will have to issue invoices only in digital format. In addition, the electronic invoice obligation also applies to amateur sports associations and third sector entities that generate income of up to 65,000 from commercial activities.
For linear taxpayers with income is below EUR 25,000 there is no such obligation until 2024.
During the transitional period for switching to electronic invoicing, from the date when the obligation arose until 30 September 2022, the deadline for issuing invoices will not be the usual 12 days. Invoices can be issued the following month, avoiding penalties of EUR 250 to EUR 2,000 as provided for in the case of late issue (this is 5% to 10% of undocumented fees).
The new regulation comes at the same time as another one regarding invoices coming from abroad, and the abolition of the Esterometro, which companies used until now. The constant changes in Italian e-invoicing regulations show how important it is for companies and organizations to have a stable and compliant technology provider in order to remain aligned with changes and ready to face them on time.
There’s more you should know about e-invoicing in Italy – learn more about the new and upcoming regulations.