You tighten the knot around the flat rate VAT numbers. The mandatory electronic invoice arrives within the current year. The scourge of tax evasion is becoming more and more cumbersome, for this reason the Ministry of the Economy has well thought of strengthening the obligation of electronic invoicing also including flat rates. On the other hand, extending electronic invoicing to all VAT numbers is part of the approval of the European Commission.
The truth is that for now, the flat rates still can choose whether to use electronic invoicing. Also because the MEF is committed to identifying operational measures for the second quarter 2022, following the provisions of the PNRR.
However, important innovations were introduced in the “M1C1-1033 finish line“Focused on the tax reform and which provide for the enlargement of conditions for electronic invoicing also for flat-rate VAT numbers.
In the 2022 Budget Law, the Draghi Government has not contributed changes to the flat-rate scheme, nor does it follow that the same remain in force requirements applied in 2021. In essence, the EU Council pressed Italy to obtain themandatory billing electronics extending this principle up to 2024 and, therefore, including in this context also the flat-rate scheme.
In other words, the obligation is parked behind the door and it may be triggered shortly. And, therefore, it all comes down to a problem of timing. In the following paragraphs more details on obligations, but also on benefits for flat rates.
Flat-rate electronic invoice scheme 2022: that’s when
It is possible that the obligation of electronic invoicing for i flat rate shots in mid-2022. Basically, in the first half they should achieve several goals, including the Milestone M1C1-103. These are not formal procedures, but essential rules envisaged by the MEF in the Tax reform whose application is essential to obtain i funds of the PNRR.
According to what reported by informationfiscale.it, the discourse falls on the obligations to be made operational and in force for all legal purposes. This is the trigger of procedures, regulations and administrative acts whose function is to pave the way for tax compliance, perfecting controls and audits. Elements present in the summary of the MEF combined with the Report to Parliament for the implementation of the plans contained in the PNRR.
Amplify the obligations of the electronic invoicing ialso including those who currently result exempt, like the flat rate, falls within the primary objectives proposed by the MEF to fight against all‘tax evasion. For this reason, it is possible that flat rates fall within theelectronic invoice obligation.
It is not excluded that Italy supports, without batting an eyelid, the provisions demanded by Europe spreading electronic invoicing even to the vast audience of exempted people. Indeed, it is possible that for access funds from the PNRR it becomes necessary to paste such an arrangement for all VAT numbers to obtain authorization from the EU Council.
Meanwhile, everything still hangs by a thread. There are none directives from the MEF regarding the‘obligation for the flat rate. 2022 has already started full of news and it is not certain that over time the picture will not thicken further with changes. On the other hand, Italy’s goal remains that of obtain the resources foreseen in the Next Generation EU program.
For the MEF do not remove the exemption from the flat rate could preclude the activity di fight against tax evasion especially on the VAT front.
Suffice it to say that according to the data released by the MEF reported tax year 2019, well 1.8 million lump-sum payments have applied the subsidized regime with 15% tax. The real problem is the lack of information on the operations performed by the lump-sum payments that generate a constitutive element of a crime and, therefore, understood in legal terms it is defined as a “Vulnus”. In the end, there is a dam on the initiatives necessary a stimulate compliance.
A point made clear by the MEF in the orientation document presented to the Draghi government, which it should outline the road to tax reform as claimed by the PNRR.
The objectives to be achieved are different, first of all limit the VAT gap. On the other hand, it only escapes from the entry into the regime of electronic invoicing from January 1, 2019, revenue was regained VAT to the extent of 2.4% compared to 2018, for a total value of approx 3.5 billion euros. That’s why, it pushes you to mow the audience of the exempted for recover VAT revenue higher than the estimates recorded in 2019.
Finally, we remind you that it has not yet been fully operational‘obligation of the electronic invoice for the flat-rate, the final decision of the Draghi Government is missing. In any case, if it were to proceed in this sense by making the invoicing obligation for the flat-rate scheme operational, the Executive should make various changes to the Legislative Decree n. 127/2015.
We recommend watching the YouTube video by Carlo Alberto Micheli on the 2022 flat-rate scheme.
Flat-rate electronic invoice scheme 2022: MEF report of 20 December 2021
In the report presented by the MEF to the Government for decide which path to opt for there is only present the obligation to e-bill, but there are also other measures that, if adopted, should actively combat tax evasion. Strongly impacting on crafty invoices, or on those who omit billing.
There are several proposals contained in the MEF report exhibited to Parliament, on which the legislator will have to rule, including:
- make operational a new communication that contains the elements ofelectronic payments;
- the strengthening, as well as the strengthening related to the preventive checks;
- the strengthening of the compliance letters;
- planned reorganization ofrisk analysis.
For this reason, the adoption of one is not excluded ad hoc law oriented to cut the provisions currently in force onexemption from flat rates. Basically, to implement theobligation of electronic invoicing lump-sum rates require an intervention by the legislator on article 1, paragraph 3 of Legislative Decree no. 127/2015.
Flat-rate risk exemption?
Currently for flat-rate VAT numbers, the reward system, born in order to encourage the use of electronic invoicing.
THE tax benefits for those who use electronic invoicing they are different. First of all, the rules governed by article 43 of Presidential Decree no. 600/73, rules arranged for the assessment of income taxes. In particular, the revocation regime of the tax assessment comes reduced by one year.
For this reason, electronic invoices issued in delayed or paper and then be reproduced in electronic form are perfectly compliant with the standard. This is because for these circumstances the rules provided by the Revenue Agency in Response no. 520/2021.
As you can read from the Revenue Agency website on subsidized flat-rate scheme the advantages are many, including:
- they are under no obligation to apply VAT;
- have no obligation relating to tax settlement, the payment and the relative presentation connected to the annual return are no longer valid;
- they are under no obligation to register the fees, invoices issued and received.
- they do not have the obligation of electronic invoicing.
Let us remember, again, that the obligation to invoice has not been introduced electronics for the flat-rate scheme. This provision is not present in the 2022 Budget Law, nor in the Tax Decree.
Accounting analyst, born in 1971.
Obtained the postgraduate diploma of Accounting Analyst, at theS. Rosa di Nola Professional Institute for Commerce, I have collaborated with various newspapers. I am currently a general information editor on pension, current affairs, taxation and employment issues. I have a pure bias on tax issues and I have chosen to help readers, with my words, to find a simple path in the complex labyrinth of legislation. The truth! I love to write, every news is worth telling, with heart, emotion and passion.
My motto is? “The value of a person lies in what he is capable of giving and not in what he is capable of taking”.