From 01.01.2022, the Esterometer will cease to be applicable – Italian companies must now send all cross-border transactions via the Interchange System (SdI).
As of 01/01/2019, electronic invoicing via Codice SDI is mandatory for Italian companies as part of the 2018 Budget Law.
Particularly for Amazon traders, this creates confusion when they register for tax in Italy – for example, in the context of Amazon Pan-Europe.
Let us begin by explaining all the terms.
Italy’s new electronic invoice regulation: what does it mean for businesses?
From 01.01.2019, all services and supplies must be invoiced electronically in Italy. At first, this regulation runs counter to EU law, which allows invoices to be issued both on paper and electronically.
However, Italy has requested a derogation to apply a mandatory e-invoicing system in order to combat the high rate of tax evasion in the country. This has been accepted by the EU Commission – at least for a limited time.
Invoices sent electronically must be in the “FatturaPA” format, which is an XML format, and can be generated with the appropriate tool.
Using SDI as a key e-billing platform, requiring electronic signatures, and mandating PEC
In order to transmit the e-bill to the Sistema di Interchange (SdI), it must also have a qualified electronic signature. Invoices are issued, transmitted, and stored on the SdI platform.
When the recipient is an end user, the tax number of the recipient must be included in the e-invoice. The invoice issuer requires that companies send their PEC (posta elettronica certificata, in German “Zertifizierte E-Mail”) or SdI recipient code in advance.
The invoices are then sent only via the SdI to the invoice recipients.
During this stage, all information recorded on the invoice is checked for completeness and accuracy. Consequently, the tax authorities can access all invoices and the information contained in them, and they can cross-check that information with the information provided by invoice recipients if necessary.
The Destinatario Code, the Univocal Office Code (CUU)
The recipient must be addressed with a code that helps you find them. There is a different code for each recipient.
In electronic invoices between private parties, a Codice Destinatario (in German, Empfängercode) is used. It consists of seven characters.
Codice Univoco d’Ufficio (CUU) contains six characters and is used only for electronic invoices sent to public authorities.
Are Italian e-invoices required to be sent via SdI?
You are not obligated to issue e-bills if your company has no branch in Italy.
The Italian tax administration clarified in a circular (n. 13/E) that only Italian-based companies are required to issue e-invoices.
A foreign Amazonwarehouse is not considered a branch or permanent establishment in an EU country, according to current EU law.
My company is located in Italy, but I sell to foreign customers. What should I do?
Listed below are the requirements for companies with a registered office or branch in Italy.
For sales to or from foreign companies, electronic invoicing is not required. In order to cover transactions not settled via the SdI, the Italian tax administration has added a new requirement: the esterometro.