Why electronic invoicing is an opportunity for flat-rate taxpayers

In Italy, electronic invoicing may soon also become mandatory for VAT holders under the flat-rate scheme, who have hitherto been exempt. In fact, the EU Council, in a resolution published on 17 December 2021 in the Official Journal of the European Union, authorised Italy not only to extend the electronic invoicing obligation for all VAT numbers until 2024, but also to extend it to flat-rate taxpayers. For the obligation for the latter to become operational, all that is missing is legislative reception. But can electronic invoicing not only be an imminent obligation, but also an opportunity for flat-rate tax payers? We asked Daniele Ratti, CEO of Fatture in Cloud.

1. More than 1.9 million Italian VAT holders under the flat-rate scheme may soon be obliged to issue electronic invoices. Why do you think electronic invoicing is not only an increasingly likely obligation, but also an opportunity for flat-rate taxpayers? How can they benefit from this change?

When the electronic invoicing obligation was introduced in Italy in 2019 in B2B and B2C relationships (between companies and towards private consumers), everyone feared the change.

Actually, after the very first transition phase, companies of all sizes, even the smallest ones, have realised that handling invoices digitally is convenient and advantageous.
So I think it will probably also be the case for flat-rate providers.

Issuing electronic invoices, using software, is quick and easy, thanks to guided compilation. If the programme then 'suggests' customer and product master data, as Invoices in the Cloud does, many typing errors are avoided.

Managing incoming and outgoing invoices with one software helps to keep everything in order and to easily find documents when needed. Furthermore, with electronic invoicing, there is no longer a need to print and store invoices in 'binders', thus saving costs and space.

In short, e-invoicing is an opportunity, also for VAT payers under the flat-rate scheme. Suffice it to say that Fatture in Cloud's customers already include some 30,000 flat-rate taxpayers, who issue electronic invoices even though they are not obliged to do so.

2. To issue electronic invoices, you need software that encodes the invoice in XML format and sends it to the Interchange System. What do you advise flat-rate taxpayers to choose the most suitable programme for their needs?

In my twenties, when I was running a start-up operating in the mobile and gaming world, I too looked for the most suitable invoicing software. I needed to issue invoices wherever I was, even from the university (which I was attending at the time), in a quick and easy way; moreover, I wanted to share invoices with the accountant in real time, without having to collect them every month-end and send them by email.
Not finding a solution that convinced me, I created Invoices in the Cloud, first for myself, then I shared it with some business friends, and finally launched it on the market.

So, if I had to advise a flat-earner on how to choose invoicing software for their VAT account, I would tell them to start by answering these questions:

• Do you want free or paid software?
  Be careful, because free software may not include all functionalities. For example, it might offer digital signature or electronic storage separately (and for a fee), both of which are essential to comply with the e-invoicing obligation.
• Do you want to issue and receive e-invoices wherever you are?
  If you run your business on the move, as I did, or you don't always have a PC at your disposal, software that is also suitable for smartphones and tablets can be invaluable.
• In addition to invoicing, do you also want to manage your entire VAT number?

  Managing a flat-rate VAT number is not just about managing invoicing. With some software, e.g. Invoices in the Cloud, you can keep track of all deadlines, register purchases, monitor the income and expenditure of your business and much more.

3. Electronic invoicing is an example of digitisation that makes life easier. What other opportunities can small VAT accounts take from the digital transformation?

Digital evolution runs fast and some scenarios that until recently seemed unthinkable are now realities that are accessible to everyone.For example, with one software you can issue invoices, receive digital payments from customers and record receipts automatically. Furthermore, one can 'talk' different digital services (the software, CRM, e-commerce, etc.) to each other so that everything is always under control.
Many of these possibilities are already present in Invoices in the Cloud, which is becoming a complete 'ecosystem' to make life easier for flat-rate taxpayers and all VAT payers.