Italy: Budget Law Introduces Mandatory E-Invoicing
In an attempt to prevent tax evasion and reduce its large value added tax (VAT) gap, the Italian government has introduced mandatory B2B e-invoicing. Oil and gas companies and those in the public sub-contract sector must comply by July 1, 2018, and all other companies must issue electronic invoices effective January 1, 2019.
So far, there are no exceptions based on industry, transaction amount or the size of a company. As a result, all transactions — including intercompany transactions — will have to be processed through the Sistema di Interscambio (SDI), which is the electronic platform managed by Italian tax authorities. More robust guidelines about processing invoices through the SDI will likely be released in the coming months. In the meantime, affected businesses will likely need to seek professional guidance to comply.