Upon the end of the Esterometro, all cross-border transactions will need to be transmitted by Italian companies through the System of Interchange (SdI).
From January 1, 2019, Italian companies must use electronic invoicing using SdI as part of the 2018 Budget Law. It is particularly confusing for Amazon traders registering for Italian taxes – for example, under Amazon Pan Europe. however, let’s begin at the beginning with an explanation of all terms.
Table of Contents
Italians Are Now Required To Submit Electronic Invoices As Part Of The New Regulation. What Does That mean?
In Italy, electronic invoices are required for all supplies and services on or after 01.01.2019. Initial interpretations of this regulation contradict EU law, which allows electronic and paper invoices to be issued simultaneously.
Italian officials have applied for a derogation, however, to allow them to adopt a mandatory e-invoice system in order to combat the high level of tax evasion there. This was approved by the EU Commission – for a limited time at least.
For electronic invoices, it is necessary to use the “FatturaPA” format, a XML format, which can be generated by appropriate invoicing software.
A Central E-Billing Platform, Electronic Signatures, And Pec Requirement For SDI
For an e-bill to be transmitted to the Sistema di Interscambio (SdI), it must also incorporate a qualified electronic signature. Invoices are issued, transmitted and stored on the SdI platform, a public legal platform.
When an e-invoice is sent to an end consumer, the recipient’s tax number must be included. PECs (postal electronic certificates, also known as “certified electronic mail” in German) or SDI codice must be sent in advance to the invoice issuer.
Note: Invoices are then sent only via SdI to the invoice recipients.
Before this is done, the invoice is checked to ensure that all information is accurate and complete. This allows the tax authorities to look at all invoices and the information contained within them and possibly cross-check them with the invoice recipients’ information.
Can I Sell My Products To Customers Outside Of Italy If I’m Based In Italy?
Having your registered office or a branch in Italy entails the following requirements.
Foreign companies are not generally required to use e-invoicing for sales and services. There has been a change in the Italian tax administration in order to cover all transactions not settled by the SdI, called the esterometro.
Until at Least 2021, These Requirements Will Apply To The Metro System
Reports are to be submitted to Esterometro in XML format each month and replace the Spesometro reports, which were mandatory until the end of 2018. The Esterometro reports cover all transactions, including cross-border activities.
Amazon FBA sellers based in Italy would, for example, be included in data concerning intercommunity acquisitions, imports, and exports.
Sales or services from or to foreign companies registered for VAT in Italy are not exempt from the e-invoice exemption and the resulting estero metro requirement. Electronic invoices must be submitted via SdI for this exemption to apply.
In these cases, since companies located in another country are not required to issue e-invoices and are therefore unlikely to have a PEC (certified email address), the taxpayer can enter the value “0000000” in the field “codice receptor” (recipient code).
In The Event Of An E-Billing Failure In Italy, What Happens?
A penalty of between 90% and 180% of the VAT due may be assessed on invoices that have not been issued according to the legal e-invoicing requirement.
There was still a transition period of 60 days granted for the first half of 2019 that allowed taxpayers to avoid penalties if they uploaded their e-bills via SdI by the 15th of the month following.
For anyone who fails to provide an estrometro or submits the wrong one by the end of 2021, a fee of €2 will be levied per undocumented transaction.
Trade Vat-Free Online In The Eu With Taxdoo
With Taxdoo, your data is automatically gathered from Amazon, eBay, your ERP (e.g. Afterbuy, Billbee, Plentymarkets JTL or Central) and shop system (e.g. Shopify). The data is then prepared for VAT purposes, transferred to financial accounting, and exported to other countries, such as Italy.
There is an automatic reporting fee of 79 euros per month and per country in other EU countries, in addition to the basic preparation fee.
To learn more about the benefits of our automated VAT compliance, click here to book an appointment for a Live Demo. During the Live Demo, we will personally explain these benefits to you and your tax advisor via screen transmission.