Italy modifies technical specification rules on e-invoices

On 28 February 2020, the Italian Revenue Agency approved new technical specification rules for e-invoices (version 1.6). The main modifications refer to new codes to be set up in xml files in order to indicate the correct “Type of document” and “Nature of transaction.”

In particular, taxpayers will have to determine the correct type of document among 18 different codes as well as identify the nature of transaction among 24 different types.

The new codes are more than double the number of codes as compared to the current version of the technical rules (version 1.5) which includes, respectively, seven codes for the type of document and seven codes describing the nature of transaction.

The updated technical specifications will be effective starting from 4 May 2020. However, the current version of e-invoices created using version 1.5 of the technical rules can be used until 30 September 2020. Starting from 1 October 2020 e-invoices prepared under the current technical rules will be rejected.

The new measures are intended to give the tax authorities a complete view of the value-added tax (VAT) treatment of the invoiced transactions and detailed information to prepare the draft of the VAT ledgers and VAT returns as provided by article 4 of Legislative Decree, 127/2015.

Consequently, the new rules are not only a fiscal obligation but they represent an opportunity for taxpayers to review the correct VAT treatment of the transactions performed and communicated to the Italian Revenue Agency as well as to complete the automation of the invoicing procedure and of the VAT compliance activities.

Source  EY

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