The electronic invoice is the digital counterpart of traditional paper invoices written on carbon copy paper. Like its paper-based version, it is subject to specific regulations, particularly regarding the obligations of the entity issuing the commercial document.

Failure to comply with these obligations, as well as errors in invoices, can result in penalties. Let’s explore how electronic invoicing works, the penalties applicable from September 1, 2024, and how to eliminate billing errors.

What is an Electronic Invoice and how does it work?

An electronic invoice is the digital version of the traditional paper invoice. It is a document, typically in XML format, that contains all the mandatory tax information, such as the date, unique document number, seller and customer details, etc.

The mandatory data are the same as in paper invoices. To these, in most cases, must be added the customer's telematic address, in the form of a PEC address, addressee code or unique electronic invoice code (or IPA code, assigned to Public Administration Bodies).

The customer is not obliged to communicate a telematic address for the delivery of the document: the supplier, in fact, is obliged to provide him with a copy (paper or digital) that has the same value as the original.

The electronic invoice is transmitted to the customer through the Sistema di Interscambio (SdI), a system managed by the Italian Revenue Agency that acts as an intermediary, ensuring:

• the invoice contains all mandatory details;
• the recipient's PEC address or recipient code is included,
• the validity of the supplier’s VAT number and the client’s Tax ID (or VAT number).

If the invoice passes these checks, the Sistema di Interscambio delivers it and provides the issuer with a receipt containing the date and time of transmission.

Once sent through SdI, the invoice data is automatically shared with the Italian Revenue Agency. Customers can access their electronic invoices through their reserved area on the Agency's website, using SPID, CIE, or CNS credentials, up until December 31 of the second year following receipt by the SdI.

Electronic Invoice Codes

Certain codes are required in electronic invoices. These codes can indicate the delivery address or the type of invoice being issued. The most important codes include:

• Document type: indicates the type of invoice, e.g. TD01 indicates an immediate electronic invoice, TD02 an advance or down payment on an invoice, and TD024 a deferred electronic invoice, which can be sent by the 15th day of the month following the month in which the transaction takes place;

• Recipient Code / Unique Code: customers can provide either a PEC address or an alphanumeric recipient code for invoice delivery. Companies use a recipient code or unique code, while Public Administration entities use a CUU (Codice Univoco Ufficio) or IPA code;

• VAT Nature Codes: define the VAT status of a transaction, indicating exemptions, non-taxable operations, or reverse charge transactions;

• Withholding Tax Codes: if a pension or social security contribution is applied to an invoice (e.g., Inps, Enasarco, or Enpam contributions), it must be indicated using codes ranging from RT01 to RT06.

Electronic Invoice: obligations and penalties

In Italy, electronic invoicing has been mandatory since 2019 for B2B and B2C transactions (as of 2024, it also applies to flat-rate taxpayers). Therefore, failing to issue an invoice, delayed submission, or errors in the document can result in penalties.

The amount of penalties depends on the type of violation and the time frame for correcting the mistake. A key rule to remember is that a non-deferred electronic invoice must be sent within 12 days of the transaction date.

Starting from September 1, 2024, the following penalties apply:

• Invoice not sent, sent late, or containing errors: A penalty of 70% of the VAT due on the transaction applies, but only if it exceeds €300 (for VAT at 22%, this means invoices exceeding €1,900 before tax).
• Omissions or errors not affecting VAT payment: Fixed penalties between €250 and €2,000.
• Formal violations (that do not impact VAT calculation or taxable income): No penalties.
• For VAT-exempt, non-taxable, or reverse charge transactions: A penalty of 5% of the undocumented amounts (minimum €300). If the violation does not impact taxable income, a fixed fine between €250 and €2,000 applies.

These penalties can be reduced through the so-called ‘ravvedimento operoso’, an operation whereby the offender can correct his mistakes. In this case, the penalties, already mitigated by Legislative Decree 87/2024, become even more derisory. If you comply within 30 days from the date on which the violation was committed, the penalty becomes 1/10 of the amount due (with a minimum of €25), within 90 days it becomes 1/9, and so on.

How to eliminate billing errors?

One of the most common issues in electronic invoice processing involves incorrect customer details, such as personal information, recipient codes, or PEC addresses. These errors can occur for various reasons.

Most of these are formal errors that do not affect VAT payments or taxable income, so they do not incur penalties. However, they can disrupt transactions—for instance, an invoice might not reach its recipient due to an incorrect PEC address, or duplicate customer profiles might be created due to minor inconsistencies in the data.

The best way to eliminate these issues is by automating data verification with a software solution that ensures access to up-to-date company information.

With Company Start by Openapi, businesses can access official, real-time data on Italian and European companies, including recipient codes.

Additionally, automating the entire electronic invoicing process can further streamline operations—particularly for businesses issuing large volumes of invoices and e-commerce platforms.

The Invoice service by Openapi enables seamless electronic invoicing, including transactions with Public Administration entities. Integrated via API, it ensures compliance, eliminates manual errors, and includes automated storage of electronic invoices.

 

Manage the entire e-Invoicing process

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