Invoicing and Tax regulation in Italy

Invoicing Regulation in Italy

In Italy, invoicing regulation is a mandatory requirement for all transactions (B2B, B2C, and B2G). The law requires sellers to issue an invoice for every transaction, and the invoice must contain certain mandatory details, including: the seller's details, the buyer's details, the description of goods or services, the date of transaction, the price, and VAT amount, among others.

Real-Time Reporting/Fiscalization

Since 1st July 2019, businesses in Italy are required to provide real-time electronic invoicing. This Electronic Invoice Exchange System (Sistema di Interscambio, SDI) aims to prevent tax evasion and promote transparency in transactions. This system is in line with European legislation and applies to all domestic B2B, B2C and B2G transactions.

E-invoicing in Italy

As part of the Directive 2014/55/UE, electronic invoicing is mandatory for every business, be it B2B, B2C or B2G. As a result, all invoices must be issued electronically and sent through the Sistema di Interscambio (SDI) platform. Any invoices that aren't sent electronically are considered invalid, and businesses can face major penalties for non-compliance.

VAT/GST/Tax Compliance

Italy adheres to the European Union's standard VAT rate, which is currently set at 22%. Certain goods and services feature reduced rates of 10%, 5% and 4%. Compliance with Italy's VAT regulations is crucial, and making errors in compliance can lead to hefty fines. Businesses should also be aware that there are strict deadlines for VAT registration, VAT return submission, and VAT payments.

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