Wide application of e-invoicing to fight VAT fraud and to increase the standardization and the digitalization of the processes: as of January 1, 2019, in Italy e-invoicing will become mandatory for all B2B and B2C supplies of goods and provisions of services.
As recently clarified, e-invoicing will be mandatory only for persons who are established in Italy, while cross-border transactions shall be reported in a new, specific reporting. Even if the article of the law expressly states that e-invoicing is mandatory for all B2B and B2C supplies of goods and services between parties that are resident, established or registered for VAT purposes in Italy (Art. 1, Para 909, Law No. 205/2017), following the EU Council decision n. 2018/593, dated April 16, 2018 (authorizing Italy to introduce this special measure) the Italian Tax Authorities have clarified that e-invoicing will be mandatory only for persons established in Italy (see Circular Letter No. 13 issued on July 2, 2018, Para 1.2). So non-resident taxable persons (without a permanent establishment in Italy) and having only a VAT registration in Italy will not be obliged to adopt said new rules; they could receive (from suppliers established in Italy) e-invoices, provided that they can receive – upon request – also the paper copy of the invoice.
Focusing on the main requirements of B2B and B2C e-invoices, they can be summarized as follows:
Particular attention shall be paid to the procedure for creating and transmitting the invoice and related timing. In case of e-invoices, general VAT rules still apply, so the e-invoice must be issued when the transaction is deemed to be performed for VAT purposes, i.e. (apart from specific circumstances) by the end of the day when the goods or the services are supplied. As stated by the Italian Tax Authorities (Regulation No. 89757/2018 and Circular Letter No. 13/2018):
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