The B2B electronic invoicing, between the European system transition and anti-fraud mechanisms of value added tax and a momentum for accounting operational performance improvements

Abstract

The theme of tax documents "dematerialization", issued in the context of taxable business operations, is one of the main elements of discussion within the reform processes of the European Digital Agenda as in those concerning the streamlining of bureaucratic procedures with the aim at increasing Italian efforts to fight VAT evasion. Among all the digital novelties, the one concerning the obligation of electronic invoicing within B2B and B2C operations has aroused greater curiosity and interest. Electronic invoicing plays a fundamental role for tax purposes, with particular reference to the aspects linked to the fight against tax evasion. In fact, the use of electronic invoicing allows administrations to carry out their checks for VAT purposes by facilitating an easier crossing of fiscal information. As highlighted in the technical report associated with the Law Decree n. 193/2016, the VAT gap in Italy is among the highest in the European Union and is due, very often, to the failure to certify and report revenues and compensation or fraud. The Italian Revenue Agency will have the widespread availability of invoice data with the objective of accelerate audit procedures and VAT controls. The electronic invoicing system is part of a greater process of reform of the control mechanisms as well as of the revision of the European Union rules aimed at identifying new ways of carrying out trade between the States of the Union and reforming the rules for applying the VAT between Member States.