Stockholm, 2/3 December 2014 Electronic invoicing in Public Administration in Italy Antonia Caressa

Legal framework Italian law no 244 of 24 Dec (Finance Act 2008) Implementing regulations:  Ministerial Decree of 7 March 2008 establishes the Exchange System (ES): a single transit point for electronic invoices to the public sector. Remits the set up and management of the Interchange System to the Revenue Agency  Ministerial Decree of 3 April 2013, regulation on the issue, transmission and receipt of electronic invoices to be applied to public administrations 1.introduces the obligation of electronic invoicing in the Public Administration, including transmission and archiving 2.forbids to make any payment in absence of electronic invoice June 6th 2014 March 31st 2015 Next Decree Ministries Tax Agencies National social-security and welfare institutions Non-resident suppliers Other central administrations included in the domain of of the National Public Debt Local administrations 1

5 million companies 2 million PA’s suppliers 60 million invoices every year € 130 billion sales Italian Scenario public administrations offices recipients of invoicing Savings estimated per year * - B2G: around € 2,0 billion - B2B: around € 12,0 billion * Source : Observatory on Electronic Invoicing – Milan Polytechnic 2

Economic Operators Exchange System Notifiche e Dati monitoraggio finanza pubblica Data for monitoring of public spending Fattura elettronica eInvoice Notifica Notifications Feed-backs State General Accounting Department Document Systems ERP Systems Digital Archiving Public Administration Protocol Fattura elettronica eInvoice eInvoice Office IdentificationCod e Agency for Digital Italy Notifications Feed-backs The invoicing system to PA Management 3

The Exchange System - Rules The authenticity and integrity of the invoice content are guaranteed by the undersigning by means of a qualified e-Signature or digital e-Signature. The transmission of invoices and the information exchange (receipts, notifications) among the process actors can be done through multiple channels. Exchange System fulfils a number of checks before transmitting to the final recipient The Exchange System handles notifications and receipts The detailed technical specifications are available on the Exchange System’s website 4

The whole process: notifications and receipts The European Directive about delay on payments stated the obligation for the government to pay its suppliers within 30 days. SDI takes a delivery receipt of the invoice and send it to the supplier. This receipt contains the exact date of receipt of electronic invoice by the Administration. Through the date of receipt of the invoice, PA can monitor the internal processes relating to the payment, in order to control the possible payments delays. Interest plus 8% that suppliers can expect from the PA as established in the Directive are counted from the date of receipt + payment term (usually 30 days) There are greater savings with the automation of the entire process. PA verify invoices and agree to pay them. PA within 15 days of receipt of the invoice verify the successful performance and send to SDI a notification of acceptance or rejection SDI delivery notification to the supplier 5

Interoperability – define transmission rules Electronic transmission through a web application exposed on the Internet accessible through HTTPS protocol to the accredited bodies Certified Electronic Mail (CEM): an system which guarantees that messages and any attached documents are sent and received Web services over the internet through HTTPS protocol Data transmission on FTP protocol Channels Service agreement office codes (PA Index) The e-Invoice recipient will have to be identified at the level of individual offices and not simply at the contracting authority level The Public Administrations are responsible for identifying and inserting the final recipient offices in the “Directory of Public Administrations” (IPA) IPA assigns a unique identifier to each office inserted in the directory PA shall notify the office identifiers to their suppliers 6

The Italian Invoice datamodel FatturaPA datamodel contains: Information for fiscal purposes from VAT European Directive information for a correct transmission of the e-Invoice to the recipient through the Exchange System ( “Office Code”) information for archiving full automation of entire order-payment cycle, through the integration of the e-Invoice document with the ERP systems and/or with the payment systems possible further information (reference to involved parties, payment data, attachments and other information) FatturaPA format e-Invoice XML Format defined by an XML Schema. The technical specifications of the “FatturaPA” format are available on the Exchange System’s website 7 FatturaPA is used by operators of every sector and allows to support every business context

E-Invoice data model (from the EU MSF Activity 4 recommandation) The proposed Directive foresees that an EN is developed on these sections of the invoice (core invoice) by CEN The Country specific sections should be standardized in the relevant NSOs coordinated within CEN helping harmonization (EU MSF recommends that the country specific elements are reduced or eliminated in the long term) The sector specific elements can be standardized in CEN or in an external entity such as a forum or a consortium or a private association (trasmission) supply process information FatturaPA datamodel MUG and BII 90% of the fields (100% of mandatory elements) can be directly or easily mapped from FatturaPA to BII and MUG 8

9 EO E-invoicing E-invoicing to certification platform 9 PA Send paper invoices to PA Receive invoices Paper invoices Attests to the receipt of invoices, recognizes the debts, certifies the credits expired, records payments Data-entry invoice information Send electronic invoices to PA Recognizes the debts, certifies the credits expired, records payments Inviato Receive invoices Financial act 2012 establishing the certification credit platform and regulates the methods to request and grant certification of trade credits DL 66/2014 establishing sending of e-invoicing from SDI to PCC From 1th of July 2014 electronic invoices are automatically sent from SDI to platform for credit certification.

10 FatturaPA is alive – invoices received june julyaugustseptemberoctober Invoices received and sent from SDI from june to november:

11 Invoices rejected from SDI (october 2014): 15% around FatturaPA is alive – invoices rejected Duplicated file other VAT ID not valid File name not valid Duplicated invoice Checks ko Office code not valid Office code not active 11

PAgiu-14jul-14ago-14sep-14 Oct-14 Ministries Schools Particular schools94 95 Police departments Security institutions and social assistence100 Other administrations 31/03/ FatturaPA is alive – distribution PA Office Code 12

Numbers: Over 10,000 SMEs credited to the service of which more than 9,000 use it daily, monthly The total invoices sent to date are over 60,000 (with an average of 900 invoices per day in the last two months) Intermedairies: MEPA SMEs operating on the MEPA (Electronic Marketplace of Public Administration) will have free access to services for: generation of invoices in the FatturaPA format archiving of invoices communication with the Exchange System 13

The project committee ­ operator of the State's central accounting system (SICOGE) ­ in charge of “Guidelines for the adaptation of the internal procedures of the administrations” RGS Revenue Agency Revenue Agency ­ operator of the Exchange System (ES) ­ in charge of FatturaPA format in collaboration with AgID ­ in charge of technical specifications ES Agency for Digital Italy Agency for Digital Italy ­ in charge of monitoring the adoption of electronic invoice for the Cabinet of Italy ­ operator of Directory of Public Administration (iPA) ­ in charge of Rules for the unique identification of the PA’s offices recipients of e-invoicing Dipartimento finanze ­ in charge of regulations DAG ­ operator of Public Administration Electronic Market (MEPA) Consip ­ ensures development, technical operation and technical maintenance of the MEPA Sogei ­ ensures development, technical operation and technical maintenance of the Exchange System and SICOGE (State's central accounting system) 14

Thank-you for attention Antonia Caressa sogei.it Credits: –Website FatturaPA: –Italian Forum on electronic Invoicing elettronica: –Multi Stakeholder Forum on Electronic Invoicing: –