Italy: Optional e-Transmission of Invoices Data
Starting from 1 January 2017, taxpayers can opt for the transmission to the Tax Administration of all data of both paper and electronic invoices and debit/credit notes issued and received. The option for the e-transmission shall be exercised electronically, by or on behalf of the taxpayer, within December 31 of the year preceding that in which the e-transmission will start.
With respect to FY 2017, such term has been extended and the option shall, therefore, be exercised within 31 March 2017. The option remains valid for five year and, if it is not withdrawn, its automatically renewed every five years. The option can also be exercised by start-ups during the year of beginning of their business activities. Companies which acts also as retailers shall exercise, together with the option for e-transmission of invoices data, the option for e-transmission of payments received. Data shall be transmitted on a quarterly basis within the last day of the second month following the end of each quarter (data relating to the last quarter of the year shall be transmitted within the last day of February of the next year) and can be changed/amended within fifteen days as of the deadline for the filing.
With exclusively regard to FY 2017, data shall be transmitted every six months as follows: within 18 September 2017 for the first half and within 28 February 2018 for the second half.
The e-transmission can be made either through the SDI interchange system, already in use for the transmission of mandatory e-invoices issued vis-à-vis the Public Administration, or through the web service made available for free by the Tax Administration on its website.
There are several and significant advantages for taxpayers exercising the option for the e-transmission of invoices data, and, namely:
- Exemption from the mandatory filing of invoices data (ie, Spesometro trimestrale);
- Facilitation and acceleration of payment of VAT refunds: annual VAT refund will be paid within three months as of the filing of VAT return and can be requested also in the absence of the law requirements normally required (i.e. turnover represented for more than 25% by exempt transactions, average VAT rate of inbound transactions higher than the average VAT rate on outbound transactions, prevalence of outbound transactions which are out of scope of VAT for territoriality reasons, etc.);
- Reduction of the statute of limitation: taxpayers, having exercised the option, which make and receive all payments, excluded those whose amount does not exceed 30 Euros, in a traceable way can take advantage of a reduction of the statute of limitation for both VAT and CIT of two years provided that the existence of the conditions to be met to take advantage of such reductions is indicated in the tax return;
- Tax credit: a tax credit equal to 100 Euro will be granted once to taxpayers having a turnover not exceeding 50.000 Euro (such tax credit will be equal to 150 Euro for dealers).
The Tax Administration put at disposal of artists and professionals, companies which benefit from the simplified accountancy regime and start-ups during the first year of business activity and the following two years a free online simplified system which will support them in the calculation of the period VAT liquidation and in the filing of annual VAT return; the Tax administration also acknowledged to those taxpayers the exemption from the duty of recording the invoices issued and received. Moreover, said taxpayers could ask for the refund of VAT for amounts up to 15.000 Euro with no need of having the tax return, in which the refund is requested, certified through the so-called “visto di conformità” and with no need to providing any guarantee to the Tax Administration.
All the above advantages will be lost in case of omitted e-transmission or in case of transmission of incomplete/wrong data not amended within the provided deadline (ie, as mentioned above, 15 days as of the deadline for the e-transmission).
The Tax Administration will make cross checks of the data electronically transmitted with the data available on other database and it will electronically communicate to the taxpayers the results of such cross checks.