Prepared by Andrea Werner Beilin and Pirola Lorenzo
According to the Law no. 178/2020, published on 30/12/2020 (hereinafter also “2021 budget Law”), which amended article 1, paragraph 3-bis, Legislative Decree no. 127/2015, starting from 1 January 2022, it will be mandatory to transmit to the Interchange data System of the Italian tax authorities (“SdI”) also the transactions made with non-resident counterparties.
This requirement, which to date has been optional and an alternative to the quarterly reporting of cross-border transactions (so-called “Esterometro”), will be mandatory. Accordingly, from 2022, the “Esterometro” will be abolished.
Below is a brief description of the obligation and related penalties.
Supplies made towards non-residents counterparts from 2022
The data related to supplies made towards taxable person not resident or not established in Italy must be transmitted electronically to the SdI.
For this purpose, the Italian taxable person should convert the invoice data in .XML format and transmit the file to the SdI within the ordinary terms of issuance of the invoice (i.e. usually within 12 days from the taxable event).
The .XML file should follow the same structure as the one currently used for transactions with resident counterparts.
Purchases made from non-resident suppliers from 2022
As per the sale invoices, the data related to purchases of goods and services received from non-resident/non-established suppliers must be transmitted electronically to the SdI.
For this purpose, the Italian taxable person will be required to convert the data of the integration document/self-invoice into .XML format and transmit the file to the SdI within the fifteenth day of the month following the one in which the purchase invoice has been received (in the case of suppliers established in the European Union) or in which the transaction has been carried out (in the case of suppliers established outside the European Union).
The .XML file should follow the same structure of the one currently used for the sales transactions with some peculiarities in the content: the Italian tax authorities, among others, provided specific <DocumentType> codes, useful to identify the transaction, in particular:
- TD17 in relation to integration/self-invoices for purchase of services from abroad;
- TD18 in relation to integration for intra-EU purchases of goods;
- TD19 in relation to integration/self-invoices for local purchase of goods according to art.17, par. 2, Presidential Decree n. 633/72.
Italian tax authorities’ guide to complete the electronic invoices
The Italian tax authorities published a Guidelines with the instructions on how to fill in the new .XML documents, which latest update is dated 7 July 2021.
As specified by the Italian tax authorities, the observance of these indications allows the correct annotation of the different types of VAT transactions in the draft registers pre-filled by the Italian tax authorities.
In terms of penalties, The Budget Law 2021 provides for an administrative penalty of € 2 for each invoice, up to a maximum limit of € 400 per month. The penalty is reduced down by a half, up to a maximum of € 200 per month, if the transmission is made within 15 days following the deadline.
For more information about the new requirements, the invoicing and registration process and the .XML content, please contact:
Luca LavazzaPwC TLS Avvocati e Commercialisti
Andrea Werner BeilinPwC TLS Avvocati e Commercialisti