Invoice and electronic receipt for the flat-rate scheme

The 2020 manoeuvre has changed the game for the benefits and obligations imposed on flat-rate taxpayers: these include the electronic receipt for flat-rate taxpayers.

The picture is getting bigger and bigger and affects self-employed persons, professionals and entrepreneurs, who from 1 January are obliged to issue electronic receipts and digitised tax receipts.

However, are there any exceptions or exemptions for flat-rate taxpayers when it comes to invoicing and especially when it comes to issuing electronic receipts?

Find out everything you need to know in our article.

See all software Billing and Invoicing

What is the electronic receipt?

Today, we are used to receiving a paper receipt every time we make a purchase. But this procedure will soon disappear. In fact, the canonical paper receipt will soon be replaced by an electronic receipt issued through specific telematic cash registers. Through these, receipts will be sent directly to the tax authorities.

The electronic or telematic receipt will fully replace the traditional paper receipt and receipts. It will make it possible to store and transmit the data of daily receipts electronically.

The electronic receipt was introduced in the wake of measures to combat tax evasion. In this sense, the e-receipt complements the introduction of mandatory electronic invoicing as of 1 January 2019 for all VAT holders.

Electronic receipt: what changes for flat-rate taxpayers?

On 1 January, the regulations for the electronic receipt underwent some important changes: all taxpayers who are obliged to transmit their receipts to the Inland Revenue are required to issue an electronic receipt. This means that even flat-rate taxpayers are included.

The obligation to issue an electronic receipt also comes into force for all business activities with assets of less than EUR 400,000.

The tax receipt and the paper receipt are two endangered species. In fact, they will be replaced by a commercial document handed to the customer. You will therefore be able to forget your beloved receipt or receipt that you were so fond of.

Given the change of such magnitude, the Internal Revenue Service, in order to adapt to the new regulations, has left a transition period (from 1 January to 30 June 2020) in which taxpayers will still be able to issue receipts and tax receipts as before. By the end of the following month, however, receipts will have to be registered and sent electronically to the Inland Revenue via the computerised means made available on the latter's website.

Taxpayers subject to the flat-rate regime had to proceed, by 30 June 2020, with the purchase of a cash register enabling the issuance of electronic receipts and the telematic transmission of the receipts recorded by the company or business activity.

During the period between 1 January 2020 and 30 June 2020 (the date of activation of the cash register), flat-rate taxpayers had to account for their receipts through the online service on the Agenzia delle Entrate website.

Once the cash register has been purchased, transactions will be recorded in this way:

• the cash register will specify the nature of the transaction
• the cash register will switch to sorting the different transactions:
  • receipts for services rendered by the company
  • receipts from the reimbursement of expenses advanced on behalf of the customer (these receipts do not count towards the 77.47 over which a revenue stamp must be added to the receipt)
• the cash register will transmit the flow of receipts to the Internal Revenue Service

Since flat-rate taxpayers are not subject to VAT, when purchasing the cash register, it will be necessary to set it according to these parameters.

For the time being, the legislation has not yet legislated on how stamp duty is to be applied. In fact, parties issuing tax receipts are obliged to issue a stamp, From 2020 with the introduction of the commercial document to be sent to the Inland Revenue Agency, the stamp will no longer be required. It is not yet known, therefore, whether the Inland Revenue will decide to reintroduce the revenue stamp also for digital submissions or will find a way to have the stamp amount paid electronically.

If the decision is made to purchase a cash register, the flat-rate taxpayer will be entitled, when filing his tax return, to have a tax credit entered in his accounts for the year in which the person incurred the expense of purchasing the cash register.

The electronic receipt obligation for flat-rate and minimum taxpayers

Legislative Decree No. 127 of 5 August 2015 established the introduction of the electronic receipt obligation. In addition, every taxpayer is obliged to account for and transmit daily receipts, which are imposed on VAT holders carrying out retail business activities.

All information concerning the transactions carried out must be sent daily to the Internal Revenue Service. The data is bundled in a telematic flow that allows the tax office to be constantly informed of sales and all other transactions carried out by the business activities and involving the use of VAT.

The new decision by the tax office to digitise invoicing has raised many doubts about the regulations implemented by the tax office. This new phase of digital transition was inaugurated by the decision to transmit receipts electronically.

What does the legislation say?

Which taxpayers are affected by the legislation? Article 2 of Legislative Decree No. 127 of 2015, still valid in 2021, states that:

persons who carry out the transactions referred to in Article 22 of Presidential Decree No. 633 of 26 October 1972, electronically store and telematically transmit to the Revenue Agency the data relating to the daily receipts.

According to the regulations, therefore, for transactions requiring the issuance of a receipt, there is an obligation to issue it electronically. Nothing changes except the procedures for its transmission.

The conclusion is as follows: minimum and flat-rate taxpayers must comply with the obligation to issue an electronic receipt when carrying out their activities.

Flat-rate taxpayers: What must they do to comply?

As we mentioned at the beginning, the electronic receipt has become mandatory. But by what means can the electronic receipt be issued?

There are two options

• purchase a telematic cash register or calibrate the one already in use
• use the online website of the Internal Revenue Service

Which of the two solutions is the most convenient?

It all depends on the type of business activity.

For taxpayers who register a high number of daily transactions, the telematic cash register is the quickest and cheapest solution. The web procedure is more laborious and takes longer.

For taxpayers who collect receipts filled in by hand, as in the case of artisans, or who do not have a high rate of daily transactions, the Inland Revenue website is more than sufficient to transmit receipts.

Flat-rate taxpayers who usually do not invoice more than EUR 65,000 per year and who perform few daily invoicing operations will again find the web procedure offered by the Inland Revenue more convenient.

What are the penalties?

Legislative Decree 471/1997, Article 6, Paragraph 3, and Article 12, Paragraph 2, establishes penalties in the amount of 100 per cent of the tax related to the incorrectly accounted amount with a minimum ceiling of EUR 500. In situations where the charges are more aggravating, this can lead to the suspension of the licence.

As the legislation has recently undergone changes, the Inland Revenue has granted a moratorium period for the first six months in which the legislation came into force. This means that for flat-rate taxpayers this window remains open until 30 June 2020. And no penalties are incurred if the fees are reported within the month following the transaction.

Which categories are exempt from the electronic receipt 2021?

The decree of 16 May 2019 issued by the Ministry of Economy and Finance specified the categories exempt from the electronic receipt.

Thus, the text of the law does not mention those subject to the minimum or flat-rate scheme. Moreover, the latter do not enjoy any exemptions or special benefits with regard to the issuance of the electronic receipt.

The legislation does not include, in the electronic receipt obligation, all taxpayers who do not fall under the certification of receipts, thus validating the already existing status quo put in place by the Inland Revenue.

Under the new tax legislation, the following transactions are not considered:

• transactions not subject to the obligation to certify the consideration;

• services of collective public transport of persons and vehicles and accompanying luggage, by whatever means exercised, for which transport tickets, including those issued by ticket machines, perform the function of tax certification

• management services of votive lights in cemeteries;

• marginal operations.

• operations carried out on board a ship, an aircraft or a train in the course of international transport.

informazione fiscale , Informazione fiscale

As indicated, therefore, the 2021 legislation has not made any changes for the minimum and flat-rate taxpayers, who are still excluded from the pool of exempt persons. The electronic receipt is also mandatory for those under a favourable regime.

See all software Billing and Invoicing

Electronic receipt: what are flat-rate taxpayers exempt from?

As we have established, taxpayers under the flat-rate scheme are required to digitally store and transmit receipts from their business activity.

But the legislation establishes exemptions for flat-rate taxpayers:

• registration of issued invoices (Article 23 of Presidential Decree No. 633 of 1972)

• registration of receipts (Article 24 of the same Presidential Decree);

• registration of purchases (Article 25 of the same Presidential Decree);

• keeping and storage of registers and documents (Article 39 of the same Presidential Decree), except for invoices and documents of

• purchase and customs import bills;

• annual VAT return and communication (Articles 8 and 8-bis of Presidential Decree No. 322 of 1998).

Investire Oggi

However, the flat-rate taxpayer is bound by the following obligations:

• numbering and storage of purchase invoices and customs bills;

• certification of receipts;

• supplementing invoices for transactions for which they are liable for tax with an indication of the rate and the relevant tax, to be paid by the 16th day of the month following the month in which the transactions are carried out, without the right to deduct the relevant tax.

Investire Oggi

For this reason, flat-rate taxpayers are required to transmit and digitally store receipts by means of a telematic recorder or the so-called 'online commercial document' from a mobile phone.

In fact, the Revenue Agency specifies on its website that

operators who used hand-filled receipts (mother/daughter bills) (e.g. plumbers, carpenters, etc.) will be able to consider using the new procedure set up by the Revenue Agency instead of the telematic recorder.

Do you still have any doubts or is everything clear to you? Write to us in the comments