Electronic invoice for private individuals, what changes?
On 1 January 2019, we all witnessed this revolution in accounting: electronic invoicing. While at first it was mainly related to B2B and public administration, developments have also brought us e-invoicing for private citizens. What exactly is changing? What does the Internal Revenue Service say ?
Let's take a little trip today into the universe of electronic invoicing to the end consumer.
Electronic invoice to private individuals, what is it?
We are talking about a type of electronic invoice issued by a person liable to VAT (classic example: a company) to a final consumer. We therefore fall into a B2C logic.
The invoice in question must be in XML format respecting technical criteria aimed at preserving its integrity.
The invoice is then transmitted via the Revenue Agency's Interchange System. This is a dematerialisation process that started with a European standard in 2014 (Directive 2014/55/EU) which was immediately applied to relations with the public administration and subsequently found application to B2B and, finally, B2C relations.
What are the advantages of electronic invoicing
Obviously, the first advantage we can think of is the dematerialisation of one of the vital parts of business activity. This leads to greater certainty in transactions, the invoices issued have legal value, and digital archiving is undoubtedly more secure.
It saves time and money, we will never stop repeating, once you switch to digital tools you will realise this.
But above all, and this explains the narrow guidelines, it is a tool for combating tax evasion. Indeed, it allows better tracking of transactions, reducing the possibilities of VAT evasion.
How to issue an electronic invoice to private individuals
The big difference in this type of transaction is that the recipient is not liable to VAT, or to put it more simply, does not have a VAT number. The lack of this important identification code has led entrepreneurs to ask the question of how to issue this particular invoice. The answer came directly from the Inland Revenue Agency, which in its implementing measure No. 89757/2018 clarified that the following conventional code should be entered in the field dedicated to the recipient's VAT number (VAT ID): 0000000.
The tax code of the recipient remains to be indicated so that it can be identified.
How will the final consumer receive the electronic invoice?
In this specific case, the Inland Revenue will send the electronic invoice via the interchange system and at the same time the supplier will be required to send a copy in paper or digital format. Why the double sending? Quite simply because not all private individuals are yet in possession of all the credentials for the IRS's online services.
In fact, the copy of the invoice sent via SdI will be available to the user in his or her tax drawer on the agency's website. To access it, citizens must have Fisconline credentials (the same pin used for the pre-filled declaration) or SPID (the public digital identity system).
Once they have received their invoice, therefore, all that remains for the final consumer is to access the reserved area of the website to use the electronic invoice consultation service.
Emphasising that in this situation double sending is mandatory, for private individuals and those under the flat-rate scheme there is the possibility of communicating a PEC telematic address or a recipient code (if they have one) for receiving electronic invoices via SdI.
How does it work if one of the parties is abroad?
The legislation on this subject is not yet totally uniform, even within European borders. In this case, we can indeed say that Italy has shown itself to be one of the most avant-garde countries on this subject. Let us therefore see the two main cases.
Seller abroad and final consumer in Italy
The regulation on the obligation of electronic invoicing is triggered when the service provider is resident in Italy or in any case has a permanent establishment there. Thus, in the case of a foreign seller, there will be no obligation to issue an electronic invoice.
Final consumer abroad and Italian company
Answering the dilemma is once again Order 89757 of 30 April 2018, which in point 9.2 says (regarding trade transactions):
The communication referred to in point 9.1 above is optional for all transactions for which a customs bill has been issued and those for which electronic invoices have been issued or received in accordance with the rules set out in the previous points
Source: Digital Agenda
As a result, those who choose to issue an electronic invoice to a foreign resident are not required to submit the monthly esterometer transmission, which would otherwise be required in the case of a classic invoice.
In any case, they will be required to send a copy of the invoice, all the more so since the other party will not have access to the Inland Revenue website.
As regards the fields to be entered, we obviously cannot use the same identification codes that we find for an Italian resident . Thus:
- Recipient code XXXXXXX
- Postcode 00000
- VAT number, speaking of private individuals remains: 0000000 (when the private individual has no VAT number)
Choosing the right B2C e-Invoicing solution
Of course, when talking about dematerialisation in the field of invoicing, we cannot but advise you to adopt a suitable software. Of course, we urge you to pay attention to some criteria in particular:
- Compliance with the relevant standards and in particular with the interchange system
- The possibility of legally compliant electronic storage for 10 years
- Certifications such as: ISO and GDPR
Here is a list of software that we think you may find useful.
Finom
Finom is a young solution that has quickly established itself on the market thanks to the simplicity and completeness it offers its users. It is a software for the entire B2B, B2C and PA electronic invoicing process that offers you a cashback system for each electronic invoice sent.
Among its many features we can appreciate
- Intelligent invoice compilation
- Management of any type of electronic invoice (active and passive)
- Status tracking
- Bank integration
Aruba
Aruba electronic invoicing is an intuitive solution that allows the creation and sending of electronic invoices quickly thanks also to mass mailing. In addition, it contains a substitute storage service for the duration of the invoicing service.
Aruba's main functionalities include
- Creating and sending electronic invoices
- Receipt via recipient code
- Importing invoices already passed through SdI
Fatturazione elettronica Aruba
InvoiceElectronics App
The InvoiceElectronics App is a user-friendly software that simply asks you to enter the information because it takes care of the rest. It has an email/ SMS notification system that tells you when the invoice has been received.
Among its features:
- Sending and receiving electronic invoices
- Automatic tax and withholding calculations
- 10-year archiving
FatturaElettronica App
Still unsure about B2C e-Invoicing?
At the end of the day, the differences between B2B and B2C e-invoicing are not many, but they still deserve some attention. Hopefully, this guide will help you clarify doubts and adopt the best software solution.
Article translated from Italian