Italian Tax Authority updates e-invoicing regulations for 2014

The Tax Authority’s Circolare ‘Circular’ 18/E now draws a distinction between an electronic invoice and a paper bill in order to disregard bills created through electronic means, but traditionally sent on paper as electronic invoices. Those generated on paper however, which are then scanned and sent electronically, can be defined as such.

The difference is not, ‘per se, the original format type – electronic or paper – used for its creation’, explains the document, ‘but rather the circumstance that the invoice is in electronic format when it is transmitted (or made available), received and accepted by the recipient.’

Included in the authority’s new Circular 18/E document, are other important areas of development. Formal, signed and written consent between the senders and receivers of electronic invoices is no longer necessary. And, although use of this system is subject to acceptance by the recipient, their payment of these bills shall be deemed sufficient proof of an implicit agreement. This also means that despite an issuer invoicing electronically, recipients are not obligated to respond in kind, and are able to maintain a traditional paper-based management system.

According to the Italian Tax Authority, there are three indispensable requirements that must endorse all electronic invoices: authenticity of origin, content integrity and readability. As long as all three features are fulfilled from the moment of issue until the end of the safekeeping period (outlined in current legislation), electronic invoices will be considered legally acceptable.

The full document, Circolare 18/E is available online and includes details of all updates to electronic invoicing requirements and definitions in Italy from June 2014 onwards.