Italy's Pioneering E-Invoicing System Boosts VAT Collection
Italy has pioneered real-time VAT reporting with its Sistema di Interscambio (SDI) e-invoicing system, implemented in 2019. The country requires structured XML format invoices within strict deadlines, enhancing VAT collection efficiency.
Italy's e-invoicing journey began in 2014, with progressive updates culminating in the 2019 full-scale mandate. The SDI system processes B2B, B2C, and B2G invoices, with specific rules for non-resident entities. Invoices must be submitted in FatturaPA XML format, with a 10-year electronic storage requirement.
The SDI system operates in near real-time, demanding automated monitoring and correction workflows to avoid penalties. This real-time invoice clearance has improved VAT collection and reshaped supply-chain responsibilities. Italy's strict invoicing deadlines require transmission within 12 days of the transaction date and just 5 days for corrections.
Multinational companies navigate Italy's e-invoicing landscape with support from EY (Ernst & Young), which assists in implementation and strategic EU-wide tax approaches. The EU's VAT in the Digital Age (ViDA) proposal mirrors Italy's SDI system, indicating a broader shift towards structured invoice formats and centralised clearance.
Italy's pioneering e-invoicing system has transformed VAT reporting and collection. With strict deadlines, real-time monitoring, and support from experts like EY, businesses adapt to this digital age. The EU's ViDA proposal signals a wider adoption of these innovative practices.
Read also:
- Minimal Essential Synthetic Intelligences Enterprise: Essential Minimum Agents
- Tesla is reportedly staying away from the solid-state battery trend, as suggested by indications from CATL and Panasonic.
- UK automaker, Jaguar Land Rover, to commit £500 million for electric vehicle manufacturing in Merseyside
- IAEA Urges Action as Zaporizhzhia Nuclear Plant's Power Crisis Worsens
