Italy SdI VAT e-invoicing raises €4bn
- European News
- Jul 10, 2019 | Richard Asquith
Italy is projecting an annual increase in VAT revenues of €4 billion for 2019 following the January extension of its SdI electronic invoicing regime to domestic B2B and B2C transactions. This is twice as much as originally forecast.
In the first half of 2019, Italy reports that 97% of invoices processed were cleared without problems. This covered over €160bn in VAT on 890m invoices.
Italy’s VAT Gap, the difference between forecast and actual VAT revenues, is estimated by the European Union to stand at over €35 billion per annum. It accounts for almost 25% of all missing VAT amongst the 28 member states of the EU.
Italian resident companies are now required to submit their domestic B2B and B2C invoices to the government’s SdI portal for real-time approval. SdI then forwards them to customers for settlement and VAT recovery. The model follows similar pre-approval e-invoice regimes in countries like Brazil, Mexico and South Korea.
France is consulting on a similar system based on the early success of Italy’s SdI. Portugal is to extend its B2G invoice clearing system on a voluntary basis to B2C invoices next year.
Need help with your Italian VAT compliance?
Researching Italian VAT legislation is the first step to understanding your VAT compliance needs. Avalara has a range of solutions that can help your business depending on where and how you trade.
Latest Italian news
February 16, 2019
Italy has proposed making marketplaces the deemed supplier and VAT principal on B2C sales below €150 by third party sellers. It will apply to consumer electronics, such as mobile phones, video games, tablets, games consols etc. It covers imports from non-EU, third countries.
February 15, 2019
Italy has postponed the deadlines for the last 2018 Spesometro and the first 2019 Esterometro to 30 April 2019.
January 25, 2019
The European Commission (EC) has proposed switching from unanimous to majority voting on EU VAT and other tax policies. The aim is to progress fiscal reforms which face immovable opposition from just a limited number of member states.