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Italy: VAT measures concerning format, recording of invoices

Italy: VAT concerning format, recording of invoices

Value added tax (VAT) measures were included in Law Decree no. 119 of 23 October 2018 that has been published in the official gazette and that has an effective date of 24 October 2018.


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The Italian Parliament will have to “convert” the decree into law (amendments could be possible) by 22 December 2018.

The provisions in the decree can be summarized as follows:

  • Invoicing simplifications—Penalty regime for mandatory e-invoices
  • Invoicing deadlines—Recording of sales invoices in the output VAT ledger; recording of purchase invoices in the input VAT ledger; which parties are subject to the mandatory invoicing rules 
  • Other rules—Time limit for input VAT recovery; electronic reporting of daily receipts by retailers; extension of the VAT group rules to banking groups


Among the new VAT measures are the following:

  • Invoices that do not comply with certain procedural requirements (for instance, rules that invoices be in XML format) will be treated as not having been issued and thus will be subject to substantial penalties. The decree grants a six-month “grace period” for a compliant invoice to be issued.
  • Changes to the VAT rules include measures for “immediate” invoices.
  • The time period for recording sales invoices into the output VAT ledger and the period of time for purchase invoices to be recorded in the input VAT ledger are modified.
  • Rules are provided for reporting daily receipts by retailers.


Read an October 2018 report [PDF 186 KB] prepared by the KPMG member firm in Italy

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