Friday 30th November, 2018
The beginning of the mandatory e-invoicing regime in Italy as of 1 January 2019 has been widely debated this year. Many applaud the potential when it comes to closing or lowering the Italian VAT gap, but smaller companies have voiced concerns about the complexity of the new framework and are requesting a delay.
So far, the Government has been very clear: The reform will not be postponed. However, Senator Andrea de Bertoldi and Senators Gilberto Pichetto Fratin and Maurizio Gasparri have introduced two legislative amendments to the Budget Law for 2018 and Decree Law 119/2018, aiming to postpone the deadline with just over a month before the mandate is set to go into effect.
The newly published decree provides a grace period for those who will not be able to comply by 1 January 2019, and determines that for the first half of 2019, the tax authority will not apply penalties if the e-invoice is issued within the VAT liquidation period. If the e-invoice is issued by the end of the following VAT liquidation period, then the tax authority will reduce the penalty by 80%.
Despite this recent cushion-effect on penalties, Senators are proposing an extension of the deadline for the entry into force of the e-invoicing mandate to 2020 and beyond. Currently, the proposed amendments are under consideration by the Senate Finance Committee and are expected to be voted on by the end of the week.