NEWSLETTER N. 17 - 2021

Dear clients,

with reference to our newsletter 3/2021 on the new provisions introduced by 2021 Budget Law (also) with regard to cross-border transactions, please note as follows.

According to the current wording of section 1 of Italian Legislative Decree 127/2015, for transactions carried out from 1 January 2022, data related to the supply of goods and services to and from businesses not established in Italy shall be submitted electronically in XML format via the Sdl-platform (sistema di interscambio). However, this does not apply to those transactions for which a customs receipt has been issued or for which e-invoices have been issued or received.

With regard to the compliance period, the following shall apply:

1. data relating to transactions carried out vis-à-vis businesses not established in Italy shall be submitted electronically within the deadline set for issuing invoices or documents certifying the relevant remuneration;
2. data relating to transactions carried out by businesses not established in Italy shall be submitted electronically by the fifteenth day of the month following the receipt of the document proving the transaction.

The submission shall be made in accordance with the technical specifications approved by decision of the Italian tax authority no. 89757/2020 and subsequently amended by decision of the Italian tax authority no. 99922/2020 and 166579/2020 and, hence, by using the XML format of the e-invoices introduced on 1 January 2021. Hence, from 2022 these new provisions on data reporting will replace the current quarterly transaction report.

From an operational point of view, reporting will be carried out in compliance with the deadlines set forth in the decision, using the "document types" provided for e-invoicing:

1. for sales, generally by electronic invoicing with the code "TD01" (currently with recipient code “XXXXXXX”);
2. for incoming invoices received in analogous form from foreign suppliers, by electronic invoicing with the following codes:

• TD17 supplement (to the incoming invoice) / self-billing (for services outside the EU) for the purchase of services from abroad; 
• TD18 supplement (to the incoming invoice) for the purchase of intra-Community goods;
• TD19 supplement (of the incoming invoice) / self-billing (for non-EU sellers) for the purchase of goods under section 17(2) DPR 633/72.

The above codes may already be used optionally since 1 January 2021.

Please also note that, pursuant to section 11(2-quater) of Italian legislative decree 471/1997, as amended by 2021 Budget Law, an administrative penalty of EUR 2 per invoice, up to a maximum of EUR 400 per month, applies to transactions from 1 January 2022 for failure to submit or for incorrect submission of data on cross-border transactions.

Such penalty is reduced to half (up to a maximum limit of EUR 200 per month), if data are submitted within 15 days from such deadline or if correct data are submitted within such deadline. 

Yours sincerely,

HAGER & PARTNERS