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In Italy, electronic invoicing (Fattura Elettronica) is a legally mandatory practice for businesses interacting with the Italian tax authority (Agenzia delle Entrate). The legal foundations for electronic invoicing in Italy include national regulations as well as European directives. These regulations ensure that electronic invoices are legally recognized and meet tax requirements.
Here are the key legal foundations:
- Italian VAT Law (Legge IVA – Decreto del Presidente della Repubblica n. 633/1972)
The VAT law (Legge IVA) forms the basis for electronic invoicing in Italy. It regulates the requirements for issuing and sending invoices and the tax recognition of electronic invoices:
Article 21 of the law specifies the requirements for invoices and states that they can be issued either in paper form or electronically, as long as the integrity and authenticity of the content are ensured.
The law also states that electronic invoices are legally recognized if they meet the requirements for authenticity of the origin (who issued the invoice) and integrity of the content (that the content remains unchanged). These requirements can be guaranteed through electronic signatures or other appropriate security measures.
- Decreto Legge 78/2010 and Decreto Legislativo 127/2015
In 2010, the Italian government introduced a pilot project for electronic invoicing in the public sector with Decreto Legge 78/2010. In 2014, the project was extended to all businesses. The main regulation regarding mandatory electronic invoicing was found in the following legislative changes:
- Decreto Legge 78/2010: Introduction of electronic invoicing in the public sector.
- Decreto Legislativo 127/2015: Extension of the obligation for electronic invoicing for all businesses. Since July 1, 2018, electronic invoicing has been mandatory for all B2B (Business-to-Business) and B2G (Business-to-Government) transactions.
- E-Invoicing and the “Sistema di Interscambio (SDI)” System
In Italy, the system for electronic invoicing is regulated by the Sistema di Interscambio (SDI), the system of the Agenzia delle Entrate (tax authority). It is a centralized platform through which all electronic invoices are transmitted to the tax authorities. The main features of the system include:
- Mandatory use of SDI: Since July 1, 2018, all businesses operating in Italy must submit their invoices electronically via the SDI system.
- Format of electronic invoices: Electronic invoices must be created in the Fattura XML format (a standardized XML format) that meets the Agenzia delle Entrate’s requirements.
- Invoice submission: Invoices are submitted through the SDI and are sent to both the recipient and the tax authorities. The SDI checks invoices for format compliance, completeness, and tax correctness, and it sends them to the recipient if they meet the requirements.
- Proof of transmission: The recipient receives a confirmation of receipt. The SDI issues a confirmed receipt (ricevuta di consegna), which serves as proof.
- EU VAT Directive 2006/112/EC
As with all EU member states, Italy must implement the EU VAT Directive (2006/112/EC). This directive regulates the legal validity of electronic invoices and ensures that electronic invoices issued in compliance with national and European requirements are tax-recognized. The most relevant provisions include:
- Article 232 of the EU VAT Directive, which states that electronic invoices have the same legal validity as paper invoices when the authenticity and integrity of the content are ensured through appropriate security measures such as electronic signatures or EDI systems.
- Regulation on Electronic Invoices (Agenzia delle Entrate)
The Agenzia delle Entrate (Italian tax authority) has issued detailed regulations on the creation, transmission, and archiving of electronic invoices. These regulations specify:
- Creation: Electronic invoices must be created in the XML format established by the Agenzia delle Entrate.
- Submission: All invoices must be transmitted via the Sistema di Interscambio (SDI), which enables the electronic transmission of invoices between parties and to the tax authority.
- Archiving: Electronic invoices must be archived for at least 10 years, ensuring that the integrity and readability of the data are maintained throughout the archiving period.
- Electronic Signatures and Security Requirements
The authenticity and integrity of electronic invoices must be guaranteed according to the regulations of the Italian tax authority and the EU VAT Directive. In Italy, electronic signatures are an important part of the process:
- Qualified electronic signatures (QES) or advanced electronic signatures (AES) can be used to ensure the authenticity of electronic invoices.
- EDI systems can also be used to ensure the integrity of the invoice.
- Archiving Requirements
The archiving of electronic invoices in Italy is subject to specific requirements:
- Retention obligation: Electronic invoices must be archived for at least 10 years.
- The archiving must ensure that the integrity of the data is maintained and that invoices remain readable at all times.
- Invoices may be stored electronically as long as the accessibility and immutability of the data are guaranteed.
- Sanctions for Non-Compliance
Companies that violate the requirements for electronic invoicing can be subject to sanctions:
- The tax authority may impose fines if electronic invoices are not correctly created, transmitted, or archived.
- In particular, failure to use the SDI system or incorrect transmission of invoices to the system can lead to penalties.
Summary of the Legal Foundations in Italy:
- Italian VAT Law (Legge IVA): Electronic invoices are legally valid if authenticity and integrity are ensured.
- Decreto Legislativo 127/2015: Mandatory electronic invoicing for all businesses since July 1, 2018.
- Sistema di Interscambio (SDI): All electronic invoices must be sent via the central transmission system of the Agenzia delle Entrate (SDI).
- EU VAT Directive 2006/112/EC: Electronic invoices are legally valid if they meet the requirements for authenticity and integrity.
- Electronic signatures: Qualified or advanced electronic signatures are recommended to ensure authenticity.
- Archiving obligations: Electronic invoices must be retained for at least 10 years.
Conclusion:
In Italy, electronic invoicing has been mandatory for all businesses since 2018. It is carried out via the Sistema di Interscambio (SDI) of the Italian tax authority, ensuring that all invoices comply with tax requirements. Electronic invoices must be created in XML format and ensure authenticity and integrity, usually through electronic signatures or other security measures. Businesses are required to archive their electronic invoices for at least 10 years.
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