Electronic invoicing and electronic receipts 2020: coming full circle

The start date of the requirement for telematic transmission of daily takings for all shopkeepers and retailers is approaching. This change is linked to electronic invoicing, which is already mandatory. What the two main tax changes of the last two years have in common is the aim of combating tax evasion.

 

Electronic invoicing

In Italy, the requirement for electronic invoicing for private VAT-registered businesses began on 1 July 2019. It is a new system for issuing, transmitting and storing invoices, introduced for two purposes: on the one hand, to combat VAT evasion and, at the same time, to reduce costs and simplify the system.

Traditional paper invoices can only be used in a few cases, and the format used is digital XML. The process of issuing and transmitting the files is based on the Italian Revenue Agency's SdI (Sistema di Interscambio - Exchange System), which, as well as checking the data shown in the document, delivers the invoice to the correct recipient.

The requirement to issue electronic invoices applies to transactions between VAT-registered parties (B2B transactions) and to supplies of goods or services by a VAT-registered operator to an end consumer (B2C transactions), when an invoice is expressly requested.

 

Electronic receipt

In this context, why were electronic receipts and the telematic transmission of takings also made mandatory?

The telematic transmission of takings via telematic cash registers, initially mandatory only for large-scale retail and vending machines, regulates and monitors certain parties and transactions that are exempt from electronic invoicing: craftspeople, shopkeepers, restaurants and hotels (businesses under the advantageous tax scheme and the flat-rate scheme).

Through the electronic invoicing and electronic receipt requirements, the 2018 Budget Law aims to create benefits and synergies designed to:

• simplify and harmonise processes, i.e. the documents certifying takings from B2B and B2C transactions;
• enable the Italian Revenue Agency to automatically gather more information and to offer more tools for completing the VAT return, especially for small operators;
• increase checks and prevent tax evasion;
• continue the country's digitalisation process in order to reduce costs and make business processes more efficient.

 

To encourage this technological transition, the Italian Revenue Agency has introduced a Receipt Lottery starting on 1 January 2021.

 

Custom Solutions for Electronic Invoicing and Telematic Cash Registers

Custom supports companies and professionals with its telematic solutions and electronic invoicing solutions. Hardware, Software and Service for unified, continuous management of all processes, for every type of retailer and in every market.