Why electronic invoicing is an opportunity for flat-rate taxpayers

In Italy, electronic invoicing may soon become compulsory even for VAT accounts under the flat-rate scheme, which have been exempt until now. In fact, the EU Council, in a resolution published on December 17, 2021, in the Official Journal of the European Union, authorized Italy not only to extend until 2024 the electronic invoicing obligation for all VAT Numbers, but also to extend it to flat-rate taxpayers. For the obligation for the latter to become operational, all that is missing is reception at the legislative level. But can electronic invoicing, in addition to being an impending obligation, also be an opportunity for flat-rate taxpayers? We asked Daniele Ratti, CEO of Invoices in the Cloud.

1. More than 1.9 million Italian VAT payers under the flat-rate scheme may soon be obliged to issue electronic invoices. Why do you think, in addition to an increasingly likely obligation, is electronic invoicing also an opportunity for flat-rate taxpayers? How can they benefit from this change?

When the electronic invoicing obligation was introduced in Italy in 2019 in B2B and B2C relationships (between companies and to private consumers), everyone feared the change.

Actually, after the very first transition phase, companies of all sizes, even the smallest ones, have realized that managing invoices digitally is convenient and beneficial.
So I think that will probably be the case for flat-rate taxpayers as well.

Issuing electronic invoices, using software, is quick and easy, thanks to the guided compilation. If the program then "suggests" customer and product master data, as Invoices in the Cloud does, many typing errors are avoided.

Managing incoming and outgoing invoices with one software helps keep everything in order and easily find documents when needed. In addition, with electronic invoicing, there is no longer a need to print and store invoices in "folders," thus saving costs and space.

In short, electronic invoicing is an opportunity, even for VAT Partners under the flat-rate regime. Suffice it to say that among the clients of Invoices in the Cloud there are already about 30,000 flat-rate taxpayers, who issue electronic invoices even though they are not obliged to do so.

2. To issue electronic invoices, you need software, which encodes the invoice in XML format and sends it to the Interchange System. What advice do you give to flat-rate taxpayers to choose the right program for their needs?

In my early 20s, when I was running a startup operating in the mobile and gaming world, I too looked for the right invoicing software for me. I needed to issue invoices wherever I was, even from my university desks (which I was attending at the time), in a quick and easy way; moreover, I wanted to share invoices with the Accountant in real time, without having to collect them every end of the month and send them via e-mail.
Failing to find a solution that convinced me, I created Invoices in the Cloud, first for myself, then I shared it with some business friends as well, and finally launched it on the market.

So, if I were to advise a flat-earner how to choose invoicing software for their VAT number, I would tell them to start by answering these questions:

• Do you want free or paid software?
  Be careful, because free software may not include all features. For example, it may offer separately (and for a fee) digital signature or electronic storage, both of which are essential to be compliant with the electronic invoicing requirement.
• Do you want to issue and receive electronic invoices wherever you are?
  If you run your business on the go, as I used to, or don't always have a PC at your disposal, software that is also suitable for smartphones and tablets may come in handy.
• In addition to invoicing, do you also want to manage your entire VAT number?

  Managing a flat-rate VAT Number is not just about managing invoicing,. With some software, for example with Invoices in the Cloud, you can keep track of all deadlines, record purchases, monitor the income and expenses of your business, and do much more.

3. Electronic invoicing is an example of digitization making life easier. What other opportunities can small VAT accounts take from digital transformation?

Digital evolution is running fast, and some scenarios that until recently seemed unthinkable are now realities that are accessible to everyone.For example, with one software you can issue invoices, receive digital payments from customers and record collections automatically. In addition, you can "talk" different digital services (the software, CRM, e-commerce, etc.) to each other so you can keep everything under control at all times.
Many of these possibilities are already present in Invoices in the Cloud, which is becoming a complete "ecosystem" to make life easier for flat-rate taxpayers and all VAT payers.