Digitalisation on the rise in Italy: Abolition of the Esterometro Report as of 01.07.2022
Italy continues to lead by example when it comes to electronic invoices. With the abolition of the so-called Esterometro Report, the country is now taking the next big step towards a digital future. As of the 1st of July 2022, cross-border invoices must now be reported to Italy’s e-invoicing system, Sistema di Interscambio (SdI).
What are the Esterometro Report and Sistema di Interscambio (SdI)?
E-invoicing has been mandatory in Italy for B2G and B2B transactions since January 2019. SdI was created to make all of this possible. From 2019 all Italian companies, suppliers and service providers sending invoices to Italian customers must send and receive all invoices via SdI’s online platform. Invoices that are not sent via the platform are deemed not to have been issued for tax purposes. This can have consequences such as fines and penalties for the business.
When SdI was introduced the platform did not yet have the necessary technical capabilities to capture cross-border invoices. Therefore, in order to process cross-border invoices the Esterometro Report was introduced. So far, cross-border invoices from companies with an Italian branch were reported to the Italian tax authorities via this report.
What changes have now taken place?
Since SdI can now also process cross-border transactions, the Esterometro Report has been abolished as of the 1st of July 2022.
All incoming and outgoing invoices related to international companies and cross-border transactions must now be reported to SdI. At the same time, the invoices will continue to be transmitted via the usual channels, for example by PDF or by post. Export invoices must be reported to SdI within 12 days of creation and import invoices must be reported upon receipt by the 15th day of the following month.
Companies, suppliers and service providers that send invoices within Italy are already connected to SdI’s platform and only need to reconnect their international incoming and outgoing invoices. Companies that are not yet connected to SdI’s platform must register and become fully connected.
Who is affected by the change?
All companies, suppliers and service providers that have a branch or a VAT registration number in Italy are affected by the change. All of the companies have to report cross-border outgoing and incoming invoices to SdI from the 1st of July 2022.
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