Electronic invoice from San Marino: sending and receiving from 1 July 2022

To begin with, the Italian company will have to use the electronic channel in passive transactions, if the San Marino supplier has chosen to do so.

The San Marino company will send an electronic invoice to the Italian transferee through the Sistema di Interscambio (SdI), which will deliver it to the Italian Revenue Agency.

The San Marino operator may:

1. Not include the tax in the electronic invoice, in which case the Italian operator will have to pay it through the reverse charge mechanism.
2. Include the tax in the electronic invoice, in which case the San Marino operator shall pay the tax to the San Marino tax office.

According to Article 17(2) of Presidential Decree 633/1972, the Italian operator must apply the reverse charge for passive transactions without charging VAT.

As of 1 July 2022, following the repeal of the esterometro, the only possible mode of submission will be electronic.

In particular, this mode provides for the creation of the following two document types in XML format:

• TD17 Integration/self-invoice for purchase of services from abroad;
• TD19 Integration/Self-invoice for the purchase of goods pursuant to Article 17(2) of Presidential Decree 633/1972.

 

In the alternative hypothesis, i.e. in case of passive transactions with VAT charged, the San Marino operator would charge the tax on the invoice and the VAT would be paid by the tax office of San Marino to the Italian Revenue Agency.

The Agency will notify the Italian transferee of the outcome of the control on the 'Invoices and Considerations' portal.

The latter may:

1. Wait for the check to be approved before registering the invoice and deducting the VAT. The primary alternative (1) on the application side, is to disable automatic accounting for San Marino suppliers, pending specific confirmation from the service provider.
2. Record the invoice only for accounting purposes and note it 'in suspension' in the VAT registers pending approval of the control. The second solution (2), on the other hand, must be implemented when:

• 2A. The outcome of the Inland Revenue on the "Invoices and Receipts" site arrives after the deadline for recording the invoice in the ledger.
• 2B. Invoices are received at the end of the year and for VAT purposes cannot be booked in the following year.

By 1 July 2022, the Italian operator must use the telematic procedure on the active side.

For Italy-San Marino exports of goods and services connected, which are not taxable pursuant to Articles 8 and 9 of Presidential Decree No. 633/1972, the electronic invoice must be sent through the Interchange System (SdI) according to the normal procedures from Italy to San Marino, reporting the recipient code '2R4GTO8'.

The invoice must specify: 

• In the tax identification field the identification number of the San Marino transferee of the economic operator (five digits starting with the prefix SM).
• In the VAT code 'nature' field, the code 'N3.3' ('non-taxable - supplies to San Marino').

The San Marino Tax Office will check the invoice and confirm its regularity, after which the results of the check will be published on the 'Invoices and Considerations' website.

If, after four months from the issuance of an invoice, the San Marino Tax Office does not validate its correctness, the Italian economic operator must issue a correction notice, in the ordinary way, in accordance with Article 26(1), without penalties or interest. In this case, it is sufficient to have a management software that is already capable of issuing rectification notices for VAT only.

Please note that the Revenue Agency has stated that at the moment it is not possible to automate the checks carried out on invoices sent to the Italian operator through the Sdi system, and that such checks can only be carried out through the 'Fatture e Corrispettivi' portal.