The Italian tax administration published on the 24th June 2014 the Circular 18/E, providing further instructions about the electronic …
The Italian tax administration published on the 24th June 2014 the Circular 18/E, providing further instructions about the electronic invoice in the light of directive 2010/45/EU and its explanatory notes. The electronic invoice was implemented with Stability law of 2013.
Article 21 of Presidential Decree N° 633 of 26 October 1972 allows the option for the taxable person to choose the method of invoicing and the consequent medium of storage, with the agreement of the counterpart (i.e. electronic invoice or traditional invoice). The element adopted to distinguish an electronic invoice from a paper invoice is the modality of transmission, receipt and acceptation of the document. The tax authority clarified that the acceptance of the invoice by the recipient is not binding for the issuer, in other words if the taxable person who issues the invoice chose the electronic method, he shall register the document electronically, even when the customer decides to apply the traditional method.
The requirements for the formal validity of the document in both cases are:
- The Authenticity of origin
- The integrity of content
- Тhe legibility
Different system of management and control of invoices are accepted by the tax authorities (e.g. Electronic Data Interchange–EDI, or advanced electronic signature). The obligation to storage the invoices are allowed also in other Member States, with which there is mutual assistance with Italy. In case of Simplified invoices issued for supplies that do not exceed EUR 100, it is possible to use for the identification of the recipient the VAT number, the tax registration number or, in case of subject non established in Italy, the VAT number granted by the Member state of establishment.
Prof. Paolo Centore
P Centore & Associates