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What you need to know about Italy, invoices and EU regulations

Lance Mercereau
Lance Mercereau
8 October 2019

Keeping on top of regulatory developments that may directly impact your company will not only prepare your colleagues for mandatory business change but also enable you to  better budget and cost future technology investments. Case in point: Italy. 

If you work at a multinational with operations in Italy, as of January 2019, all VAT-registered companies must have started issuing invoices electronically using the country’s online exchange system, Sistema di Interscambio (SdI).

Italy’s law means that companies need to convert invoices for private transactions into a government-defined XML format and send them through the SdI exchange. The law went into effect on January 1, 2019. Penalties have not applied for the first six months, but now, they could range from 90 to 180 percent of any VAT that is not correctly documented. 

Between the date the legalization was first discussed and the day the legislation became law, companies had two years of preparation. 

Now, you may be asking yourself if similar laws may come into effect in other countries and, if so, what business changes does your company need to undertake to become compliant? There are and it’s here that regulatory intelligence is invaluable.  

The cost of implementing system change that involves a lot designing, testing and deploying new technology and processes such as core accounts receivable and accounts payable systems can be expensive - but it need not be the case.  

By proactively identifying new regulatory developments, you can quickly identify, prepare and plan what you and your colleagues need to do next, with plenty of time to spare, as other countries follow Italy’s lead to require compulsory B2B e-invoicing in the European Union

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