Deadline Approaching for Mandatory Electronic Invoicing Extension

• Italy is seeking an extension of mandatory electronic invoicing authorization from the EU Council
• Current authorization expires December 31, 2024
• The electronic invoicing system has shown significant benefits:
  • Detected and blocked fraudulent VAT credits worth €9 billion in 2022 (up from €1 billion in 2019)
  • Helped monitor economic trends during COVID-19
  • Simplified tax procedures by eliminating several reporting requirements
  • Enabled pre-filled VAT registers and returns

Proposed Extension:

• Extension likely until December 31, 2025, or until new EU “VAT in the Digital Age” (ViDA) rules take effect
• ViDA package (expected to be approved in November) would:
  • Remove need for special authorization for mandatory e-invoicing
  • Modify Article 218 and eliminate Article 232 of EU VAT Directive

Rationale for Extension:

• Avoid additional costs for businesses that have already invested in e-invoicing systems
• Continue effective tax fraud prevention
• Maintain streamlined tax administration processes
• Data will be shared with additional authorities (Customs and Monopolies Agency) for oversight

Source: eutekne.info

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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