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Italy wins EU approval for 2019 SdI e-invoicing

  • Apr 24, 2018 | Richard Asquith

Italy wins EU approval for 2019 SdI e-invoicing

Italy has been granted approval by the EU to implement its January 2019 SdI requirement on most businesses to report in real time B2B domestic sales invoices. This includes permission to derogate from Articles 218 and 232 of the EU VAT Directive. The derogation is however only temporary: it shall apply from 1 July 2018 until 31 December 2021. Italy will then need to demonstrate that it has been effective in reducing VAT fraud to gain a further extension.

Italy SdI mandatory e-invoice reporting

The new Italian Sistema di Interscambio (SdI) live electronic VAT invoice clearance system requires certain invoices to be registered with the Italian Revenue Agency prior to issuing to the customer. The requirement is already in place for B2G (government) invoices. The electronic reporting of sales invoices allows the Agency to compare data with actual payments in the detection of potential VAT fraud. It will also help simplfy VAT reporting and boost digitisation.

By way of derogation from Article 218 of Directive 2006/112/EC, Italy is authorised only to accept invoices in the form of documents or messages in electronic format if they are issued by taxable persons established in the Italian territory other than those taxable persons who benefit from the exemption for small enterprises referred to in Article 282 of Directive 2006/112/EC. By way of derogation from Article 232 of Directive 2006/112/EC, Italy is authorised to provide that the use of electronic invoices issued by taxable persons established in the Italian territory shall not be subject to an acceptance by the recipient, except where those invoices are issued by taxable persons who benefit from the exemptions for small enterprises referred to in Article 282 of Directive 2006/112/EC.


Need a fiscal representative in Italy?

Non-EU businesses selling in Italy will need to appoint a fiscal representative alongside completing VAT registration and returns.
Fiscal representatives are responsible for the accurate VAT submissions of their non-EU clients.
Avalara offers a Fiscal Representative Service as part of its international VAT and GST Registration and Returns Service.

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. 

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VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He can be contacted at: richard.asquith@avalara.com. He is part of the European leadership team which won International Tax Review's 2019 Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.