In 2020 fewer electronic invoices sent to the Interchange System (SDI), due to the lockdown from Covid-19, but invoicing errors halved.
Although the lockdown signaled a decline in electronic invoices sent to the Sistema d’Interscambio (SdI), the number of discarded invoices in 2020 was cut in half compared to 2019. This implies that professionals and companies have become more familiar with e-invoicing, becoming more precise in issuing tax documents.
According to data from the Agency for Digital Italy (AGID), 178 million e-invoices were managed by the SDI of the Revenue Agency in 2020. Moreover, out of more than 30 million invoice files received, only 1 million were discarded due to errors in compilation or transmission. This figure demonstrates how electronic invoicing has come into full operation, making it possible to bring VAT to light and combat tax evasion. The Ministry of Economy and Finance (Mef) recorded between January and November 2020 a drop in VAT taxable income detected through e-invoicing of 11.2%, however, due to the crisis caused by the restrictions imposed by the anti-Covid measures.
Electronic Invoicing: rejected invoices halved
The Revenue Agency’s Interchange System (SDI) in 2020 handled over 178 million electronic invoices according to AGID data. Invoice files received between January and December 2020 totaled 30,173,980, down from the 32,823,689 recorded in 2019. A decrease attributable to the many businesses forced to close during the lockdown and hard hit by anti-Covid restrictive measures.
Invoice files discarded by SDI in 2020 instead dropped to 975,393, just under a million, while in 2019 they totaled 2,210,764. The percentage of discarded files has therefore dropped from 6.73% in 2019 to 3.237 in 2020, a sign that professionals and companies have learned to compile and issue invoices without errors. This has also been possible thanks to the many platforms now available for managing electronic invoicing with simplicity and speed, such as Libero’s SiFattura management software, which allows you to create a registry of suppliers and customers, keep an eye on the invoices paid and those to be paid, and quickly verify that the data entered is all correct.
These services are within reach of all professionals and companies: for example, Libero SiFattura offers a free plan with basic functionality, while for those who need additional functions there are Lite plans available from 29 euros per year plus VAT and Pro plan from 49 euros per year plus VAT. The Pro plan also offers multi-user functionality, i.e. the ability to share invoices with accountants and collaborators, thus limiting the risk of invoices being rejected by SDI.
Electronic Invoicing: VAT taxable amount down due to lockdown
The downward trend in the number of electronic invoices received by SDI is also affecting VAT taxable amount. The Ministry of Economy and Finance (Mef) in the report that analyzes the period between January and November 2020 recorded an overall decline of 11.2% of VAT taxable income detected through electronic invoicing. The drop mainly concerns entities and companies, i.e. non-individuals, with a percentage of minus 11.5%, compared to a decrease of 5.3% for individuals.
The lowest VAT taxable amount was touched in April 2020, right at the lockdown when all commercial activities were suspended, with a peak of minus 37.2% compared to the previous year. With the reopenings, from May to October, there was a recovery until the new drop in November dictated by the new restrictive measures.
Electronic invoicing: IPA offices increase in 2020
The process of digital transformation that also passes through electronic invoicing does not stop even with the lockdown, and AGID data confirm this. In 2020, the number of offices present in the index of digital domiciles of Public Administrations and public service providers (IPA) has increased. In fact, it went from 58,323 e-invoicing offices on the IPA in December 2019 to a number of 58,969 offices in December 2020.
After all, the IPA is the public list that contains the digital domiciles to be used for communications and information exchange with PAs, public and private service providers. The increase even during the lockdown implies a greater diffusion of the electronic invoicing system, destined to grow again when the restrictive anti-Covid measures will give way to normality and to the reopening of companies and commercial activities.