News on electronic invoicing 1 July 2022

The 1st of July 2022 will be a defining moment for the way in which the transactions of various VAT taxable persons, for whom the obligation of electronic invoicing will be introduced under certain conditions.
The persons affected by the new VAT rules are:

  1. flat-rate taxpayers, persons under the advantage regime and amateur sports associations;
  2. taxpayers carrying out transactions with non-resident and non-established persons, although identified for VAT purposes in Italy;
  3. VAT taxpayers dealing with San Marino.

E-bill for flat-rate taxpayers, subjects under the advantage regime and amateur sports associations

The first novelty has as its rationale the need to broaden the range of subjects with an obligation to e-invoice and to continue the process of combating tax evasion.
From 1 July 2022, in application of Art. 18. Decree 36/2022, the exemption from the e-invoicing obligation for VAT holders under the flat-rate regime, for persons under the advantage regime (ex art.27, comm. 1 and 2, Decree 98/2011) and for amateur sports associations that in the previous year earned total revenues/income of more than 25,000 euro will cease.
Consequently, the exemption exists for entities that do not exceed the aforementioned threshold, which may continue to issue invoices in paper format until 1 January 2024. From this date, all persons under the ‘advantage’ regimes will be obliged to issue electronic invoices.
In addition, there will be a transitional period from 1st July to 30 September 2022 during which no penalties will be imposed under Article 6(2) of Legislative Decree 471/97 if the invoice is issued by the end of the following month.
Finally, with the electronic invoice obligation will also follow the electronic storage obligation pursuant to Article 39 of Presidential Decree 633/1972.

Foreign Transactions

1st July will also be a crucial date for the so-called esterometro, as active and passive transactions with non-resident foreign entities (including those identified for VAT purposes in Italy) will have to pass through the SDI in Xml format. Hence, the obligation to transmit the quarterly communication of cross-border transactions no longer applies.
Transactions certified by an electronic invoice and those relating to transactions with non-EU countries documented by an import/export customs bill remain excluded from the obligation to report in esterometer.
In view of the changes introduced, it is important to consider the following potentially critical aspects:

  • the passive flow management, which involves the conversion into Xml format of foreign invoices received and self-billed invoices, as well as their subsequent transmission to the SDI;
  • the timing of transmission of invoices received from abroad, which, in fact, must be sent by the 15th of the month following receipt or execution of the transaction;
  • the transmission to the SDI of out-of-country transactions as well.

Transactions with San Marino

E-invoicing will also be mandatory from 1st July next for transactions between Italian and San Marino taxpayers.
The persons concerned are all those who are required by law to issue e-invoices, including those for whom the obligation starts from the third quarter of 2022 and foreign persons with a tax representative in Italy.
The transactions concerned are purchases/sales and transfers of goods with non-transfer of ownership. On the other hand, transactions involving the temporary transfer of goods are excluded from the electronic invoicing obligation.
The moment of execution of the supply coincides with the dispatch from Italy or San Marino. Furthermore, for supplies from Italy, the advance invoicing or the collection, even partial, of the consideration is relevant.
As regards the provision of services to San Marino, the issuance of an electronic invoice remains optional, as also established by Revenue Agency Order No. 211273/2021, except for services outside the scope of VAT performed outside the European Union.