Elimination of printing and paper, envelope and stamp costs
Electronic exchange of invoices with FatturaPA
Since 01 January 2019, all invoices in Italy have been sent via a central interface. This interface is the SdI – the Sistema di Interscambio. The Italian invoicing format is FatturaPA, an XML invoicing format for electronic invoices according to article 21, paragraph 1 of Presidential Decree 633/72.
FatturaPA stands for Fatturazione Elettronica verso la Pubblica Amministrazione and translated means: “Electronic invoice to the public administration”. The term covers all technical and organizational measures for electronic invoicing to public administration.
Breaking News: Deadlines postponed
The introduction of the new guidelines in Italy has now been postponed until January 1, 2022. The Agency for Digitization has defined new conditions for the storage and archiving of electronic documents. As a result, on 17.05.2021, following several discussions and requests for changes from various associations and administrations, the new Directive No.371/2021 was corrected. In order to give the parties affected time to adapt, the new deadline for use was postponed from June 7, 2021 to January 1, 2022. The new documents can be viewed on the website of the agency.
On April 20, 2020, the Italian tax authorities published new regulations that for the time being delay the introduction of the new FatturaPA requirements. The timetable for B2B and B2G is now as follows:
- The new procedure will enter into force on 1 January 2021
- The new process will be available in production from 1 October 2020
The specifications associated with this change have also been updated:
- The new version 1.6.1 for the B2B specifications
- The new version 1.3.1 for B2G specifications
- The new version 1.8.1 for the technical specifications for the SDI Platform
Please note that the procedures are identical for B2B and B2G.
In Italy, the Italian administration accepts electronic invoices, but since March 2020 only invoices in electronic format sent through the Interchange System (SdI) are accepted. The Sdl platform is used to record the entire invoice data transfer. Invoices that are not sent via FatturaPA are not valid and are subject to penalties.
In the business-to-government (B2G) sector, Italy is already following the international standard and trend towards electronic invoicing. However, electronic invoicing is now also mandatory in the business-to-business (B2B) sector. Since 1 January 2019, every invoice in Italy must be exchanged in B2B via the Sistema di Interscambio.
This applies both to Italian businesses with a VAT number and to suppliers and service providers registered in Italy who issue invoices for Italian businesses. This means that companies in other countries with a branch in Italy are also affected.
New regulations for e-reporting in Italy
From 2022, it will also be mandatory to use FatturaPA for cross-border invoices. In this context, Esterometro will then be abolished at the end of June 2022.
Cross-border invoices for sales and purchases previously had to be reported quarterly using the Esterometro procedure, while domestic invoices were exchanged via the Sdl platform. From January 1, 2022, this will now also apply to cross-border e-invoices and they will also have to be reported to Sdl in FatturaPA XML format.
After this procedure can already be used by companies on a voluntary basis since the beginning of B2B e-invoicing, it will now become mandatory for all companies.
What is the process for reporting cross-border invoices with FatturaPA?
The latest version of the FatturaPA Invoice Scheme includes additional new document types, which can then be used to fulfill the reporting requirements of cross-border invoices. This means that it is not the cross-border invoice itself that is sent to Sdl, but only data. This is data that has been exchanged in any way abroad. This includes, for example, paper invoices or a PDF invoice sent to the buyer by e-mail.
A more detailed description of how to create the FatturaPA XML format can be found in the AGID guide “GUIDA ALLA COMPILAZIONE DELLE FATTURE ELETTRONICHE E DELL’ESTEROMETRO“.
The transmission of the cross-border FatturaPA invoices must be made no later than the 15th day of the month following the month in which the document proving the transaction was received.
Which cross-border supplier invoices must be reported using this procedure?
- Invoice receipt from a non-EU supplier or a foreign intra-Community supplier
- Cross-border incoming invoices must be issued in FatturaPA XML format with the document types (“tipo document”) TD17, TD18 and TD20
- As an option, the original invoice can also be embedded in the FatturaPA XML format, here both invoices are then archived together
Challenges
- Creation and transmission of a cross-border FatturaPA invoice must be automated
- Optional embedding of the original invoice into the FatturaPA XML invoice file
- Receiving, monitoring and reporting corrections of status messages from the Sdl
- Archiving
How does FatturaPA work?
Invoice data is automatically generated in the customer ERP system and transferred to the INPOSIA cloud. Any exchange protocol can be selected for this, as long as all the content required by FatturaPA is available. We receive your data in the INPOSIA cloud and translate it into the target format so that it can be finally transmitted to Sdl.
The Sdl web service will then return an acknowledgment of receipt indicating whether the transmission was successful. The confirmation can either display incomplete data or incorrect identification IDs or positively confirm receipt of the invoice. However, this only confirms receipt and not the processing by the recipient.
Next, the Sdl service provides the invoice data for the invoice recipient. Depending on whether more precise e-mail data or similar is included, the Sdl service can push the invoice to the recipient. The invoice is issued as soon as you receive the first positive confirmation. Only for B2G/PA (but not B2B) the recipient can accept/reject the invoice and send back a second confirmation.
If the invoice sent to PA is not accepted/rejected by the Public Administration after 15 days, it will be considered accepted by PA, and notification of expiration of terms for a response from PA is sent to the issuer (this applies to B2G e-invoicing only).
At INPOSIA, we take care of this process for you and take the confirmations. If you wish, we can also convert them into your desired ERP format so that you can display the processing status in your own ERP system. This enables your ERP to tell in real time whether an invoice has been received by the recipient or not.
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Features of FatturaPA
FatturaPA consists of an XML file, corresponding to the FatturaPA format. This is the only format accepted by the SdI.
With the help of an electronic signature, which is created on behalf of the biller, it is guaranteed that the content of the invoice is genuine. The same applies to the authenticity of the origin. The electronic signature is mandatory for all invoices exchanged via Sdl. Two formats are permitted for the electronic signature:
- CAdES-BES (CMS Advanced ELektronic Signature)
- XAdES-BES (XML Advances Electronic Signature)
INPOSIA will of course take care of the electronic signature for you before transmitting the invoice data.
A unique identification code is required for transmission. This code is linked to the public administration body to which the invoice is addressed.
The legislator also requires that invoices must be archived for at least 10 years. Such an archive requires a corresponding certification, the so-called AgID certification. This guarantees the conformity of the archiving with the Italian laws.
Advantages of FatturaPA
Transmission of invoice data
To be connected to the platform, there are two options. Manual and automated transmission of electronic invoice data is available.
Manual transmission
Manual transmission requires human manual action – which is unsuitable for the transmission of large invoice volumes. These two manual channels are available:
- Transmission by certified e-mail (PEC)
- Input of invoice data via a web form
The second option is particularly suitable for smaller companies, as it is free of charge, in case you‘re using the provided software
from the tax authority.
Automated transmission
With automatic transmission, data can be exported directly from the company’s management system (ERP) and transferred to the Interchange System. This method is very suitable for high volumes of invoices. Various webservice and sFTP transmission channels are available.
INPOSIA Solutions provides its own certified and registered channel with SDI for the automatic transmission of invoices from your ERP system.
Registration with FatturaPA
Would you now like to register with FatturaPA? To do so, your registration must first be carried out by an authorised person from the Italian branch. However, if you use an EDI service provider such as INPOSIA, this registration is not required. We will take over the data transfer to the Sdl service for you. If you register as a company independently, the following types of access data can be used: Entratel, Fisconline, Carta Nazionale die Servizi (Italian citizen card).
For the subsequent registration of a technical transmission channel, the platform requires the following information:
Finally, all technical details such as certificates and access data are sent to your PEC e-mail address.
With INPOSIA you can master any challenge!
After all this information it is obvious that this process with FatturaPA expects many technical and legal requirements and is therefore relatively complex. As a digitization specialist, many details and requirements have to be considered. Nevertheless, you should choose a partner who knows the requirements in Italy well and who has already successfully supported many Italian companies in this process. Because an experienced partner can comfortably accompany you during the implementation, knows the international requirements and thus effectively takes care of your automation.
INPOSIA is the partner who can fully adapt to your needs and is flexible in its application. Choose between the INPOSIA Suite or the INPOSIA Cloud. Manage your cloud private or public, or your suite with your own data network or via managed service. The possibilities are many and varied and we have the ability to adapt our products perfectly to your needs. Together with you, we will find the solution that suits you best! Make e-invoicing with FatturaPA as easy as possible.
Would you like to learn more about e-invoicing?
Then get in touch with our e-Invoicing experts. We are happy to be there for you. By telephone, by e-mail or personally at your premises!
Muzaffer Havcarci
INPOSIA e-invoicing Specialist
