For people owning flat-rate systems, the current legislation does not necessarily require electronic invoicing. The obligation of electronic invoicing, in fact, came into force in January 2019 and involved all taxpayers with few exclusions. These also include workers with a VAT number on a flat-rate system or on a minimum basis system.

For taxpayers who operate on a flat-rate regime, the electronic invoice obligation occurs only when the customer to be invoiced is a Public Administration entity. However, it may be convenient for a person on a flat-rate scheme to choose to switch, without any obligation in force, to electronic invoicing. 

Let’s look at various aspects of the question together.

Electronic invoicing, how does it work?

Electronic invoicing was created to overcome the difficulties and inaccuracies of the traditional management of paper tax documents. The automated procedures are intended to avoid errors or gaps within the entire billing flow.

The so-called Interchange System (SDI), indeed, allows to verify that each invoice is complete with all mandatory datas. In addition, the insertion of a recipient code ensures that the invoice is delivered correctly and in full to the customer. In short, no more inaccuracies and changes to datas, random or intentional, and more assurance in the entire procedure. Moreover, please note that for flat- rate scheme people, the adoption of electronic invoicing also involves the abolition of VAT registers.

Taxpayers must keep electronic invoices for 10 years (in electronic format). In fact another advantage is that at the moment, the italian Revenue Agency website can keep them for 15 years free of charge.

Once the step to electronic invoicing has been completed, both the “active cycle” ( i.e. the flow of sales documents), and the “passive cycle” (i.e. the flow of the documents relating to purchases) must be managed in this way. This full tracking allows better controls so as to become a tool in the fight against tax evasion. At least this was the hope that came with the introduction of the new system.

Flat rate system and e-invoice 2020

At the moment, flat-rate taxpayers can continue to issue paper invoices related to their activities, and to receive paper invoices from suppliers or operators regarding their purchases.

However, the flat-rate scheme person who enjoys the exemption from the electronic invoice can decide, instead, to use it for all its invoices. In this case, the Revenue Agency will recognize some advantages.

Indeed for now, there is a reduction of one year over the years that can be verifiable: the deadline for the notification of assessments goes from five to four years. Furthermore, it is possible that other incentives will be included in the next budget law. The tracking of payments is a priority for the State and the electronic method meets this need.

For further information do not hesitate to contact us. The professionists of Studio Consad have always offered customized advices to manage one’s tax position and to access benefits and advantages.

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