Mandatory e-Invoicing in Italy for all private companies in 2019
In Italy, with the passing of the 2018 Budget Law, the text that introduces obligatory electronic invoicing among private companies in Italy has finally been approved.
The text, which amends Legislative Decree 127 of August 5, 2015, includes transactions between private entities within e-Invoicing processes. So, businesses will now be required to transmit their invoices through the SdI (Sistema di Interscambio) exchange system and in the XML format defined by the Revenue Agency (Agenzia delle Entrate).
Italy is one of the most advanced countries in Europe in e-Invoicing uptake, as well as massive widespread use of the PEPPOL network for exchanging data between the public sector and its suppliers. Thanks to the spread of e-Invoicing in the B2G field, it was foreseeable that the next step towards full digital transformation would be B2B electronic invoicing.
Budget Law key dates
To comply with this new obligation, companies must take into account two key dates:
- As of July 1, 2018, the requirement comes into force for some companies with activities related to hydrocarbon fuel supplies for engines or which provide subcontracting or outsourcing services in public tenders.
- From January 1, 2019, the requirement will be applied across the board for all private companies.
How does e-Invoicing in Italy work?
EDICOM has developed a solution that automatically integrates the electronic invoices received through the direct channel between EDICOM and the SDI platform into your ERP. So, it is no longer necessary to check your e-mail for new messages, saving on time and resources. In reception of the XML message, it is also possible to apply a format conversion to deliver a file suitable for simple and direct integration into the ERP. Notifications from the SDI, necessary for correct use of the platform, can also be integrated in the ERP.
The e-Invoicing solution for Italy developed by EDICOM works equally well for billing between private companies and for invoicing the Public Administration. It is a complete and secure services platform that guarantees connectivity with any partner or institution. In addition, it is a scalable and international solution, adapted to the regulatory requirements for e-invoicing in more than 65 countries around the world.
Advantages of the automation of B2B e-Invoicing
Automating inbound and outbound data processes and integration in a company’s ERP system positively impacts:
- Administrative process efficiency. Invoice generation, issuance and dispatch, cutting times and reducing errors with respect to manual invoice handling.
- Expenditure, by eliminating paper along with printing, mailing, and filing costs.
- Human error. Automation reduces and even eliminates errors in generating and sending invoices and receiving and managing incoming ones.
- Shorter delivery and invoice collection times. Online management cuts turnaround times as dispatch and reception are immediate.
- Enhanced commercial transaction security. Billing is done using private networks or dedicated protocols like AS2, FTPS, Web Services, etc., while digital signature systems ensure invoice integrity, source, and authenticity.
- Invoices are received and integrated automatically. Validation and annulment processes can be automated on the basis of the information contained in the document. An electronic document can be integrated into ERP automatically and therefore posted automatically as well, leaving it ready for payment with practically no human intervention.
- Elimination of paper from daily administrative tasks. This has major cost savings and makes an important contribution to environmental sustainability.
- Fast, secure, and standard invoice storage. The EDICOM solution provides effective control of the record-keeping system, filing all invoices in accordance with the law.